This action arises from what class members assert are patently unlawful attempts to collect debts by the use of "in-house" collection letters that are purported to be from a third-party attorney. The class members assert that the letters are not actually mailed from Mr. Dembitzer's office, but from Somnia's offices. These letters, according to class members, are deceptive and violate the FDCPA because they lead consumers to believe that their account has been forwarded to an attorney for collection when, in fact, the account has not even been reviewed by the attorney.

According to the class members, the letters are not signed by Mr. Dembitzer but simply use his name to intimidate consumers into paying the alleged debts. According to consumers, the letters threaten a lawsuit if the debt is not paid. Allegedly, no such action is undertaken, and this is an additional misrepresentation. Under the FDCPA it is unlawful to send a letter or communication that states it is from an attorney or law firm, when it is not. It is also unlawful to represent that an attorney reviewed a debt, when he or she, in fact, did not. Collecting a debt using any false representation is also forbidden under the FDCPA. These types of violations entitle consumers to statutory damages under the FDCPA. The class members assert that Somnia has been engaging in these unlawful and fraudulent activities for quite some time, and that the violations number in the hundreds.