Three Debt Collection Firms Pegged with Class Action Suit

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A Wisconsin consumer has filed a proposed class action against Unifund CCR, LLC, Pilot Receivables Management, LLC and Distressed Asset Portfolio III, LLC over allegations the companies overstepped federal debt collection laws. The complaint alleges that on or around May 30, 2017 the plaintiff received a collection notice from Pilot Receivables concerning a debt supposedly owed to Citibank. Less than a month later, the case continues, the plaintiff received another collection notice for a debt allegedly owed to Distressed Asset Portfolio III.

The complaint says the second notice lists Citibank’s address as that of the original creditor right above listing Distressed Asset Portfolio as the “Current Creditor to Whom the Debt is Owed.” The plaintiff argues this constitutes a materially false, misleading and confusing statement under the Fair Debt Collection Practices Act (FDCPA), as the unsophisticated consumer, the case continues, would mistakenly believe the address listed in the second collection notice would be that of the current creditor.

“Certainly, the consumer would be more familiar with Citibank and its payment address than with Unifund,” the case asserts. “Including the original creditor’s address in the validation letter is misleading. It directs the unsophisticated consumer to make payments and send disputes to the wrong party.”