A national class action has been filed in New York against Rickenbacker Collections on behalf of all U.S. residents who have, since November 5, 2002, received a collection letter marked "Urgent Notice" and carrying Rickenbacker's letterhead that threatens litigation if the debt is not paid immediately. Debtors claim that these letters violate the federal Fair Debt Collection Practices Act and are seeking declaratory relief and statutory damages.
Debtors allege that Rickenbacker's collection letters violate the federal act because they are deceptive, misleading and unfair. According to the debtors, these letters contain three elements that violate the law:
1. The letters are boldly marked "Urgent Notice," when debtors allege the debts are not an urgent matter worthy of this heading.
2. The letters inform the debtors that litigation has been initiated when, in fact, it has not.
3. The letters carry a symbol on the letterhead bearing a strong resemblance to the markings used by the United States Air Force. The action asserts that this symbol is intended to give the false impression that Rickenbacker is associated with, vouched for or bonded by the U.S. government when, in fact, it is not.
Under the federal debt collection practices act, a debt collector cannot use deceptive, misleading or unfair practices to collect a debt. It is also unlawful to use intimidation to collect a debt. The debtors claim that these letters are "form" letters and that Rickenbacker's practices have been willful and systematic. Thus, persons subjected to the alleged violations may number in the thousands.