According to consumers, Statewide has violated the federal Fair Debt Collection Practice Act through the use of misleading and deceptive form type collection letters. According to consumers, Statewide's letters include language that is confusing a deceptive. Consumers allege that Statewide sent them a follow up letter in less than 30 days after their initial communication that stated an immediate need for consumers to contact their creditor regarding the debt. The letters stated that it was assumed that the debt was valid, but in the event that there was a legitimate reason to dispute the debt, consumers were obligated to do so immediately. Under the Fair Debt Collection Practices Act, any person or entity attempting to collect a debt is obligated to inform the debtor of his or her right to dispute the validity of the debt within 30 days. Consumers have the right to dispute the validity of the debt for any reason, legitimate or otherwise. This information must be provided to consumers within five days of any initial communication, and is generally provided within the initial communication. By sending a follow up letter to consumers less than 30 days after the initial communication, and by stating that the validity of debts could only be disputed for legitimate reasons, the consumers allege Statewide's actions were confusing and deceptive. According to consumers, these actions overshadowed the required notice regarding validity and diminished its importance. Consumers claim that Statewide has sent thousands, if not tens of
thousands of these form letters and that the class is, therefore, potentially very numerous.