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Pennsylvania Consumers Cry Foul Over Debt Enforcement Bureau, Inc.'s Collection Letters

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Case ID: 3508 | Credit / Debt | 06/29/2004

A statewide class action has been filed in Pennsylvania against collection specialists Debt Enforcement Bureau, Inc. The action is brought on behalf of all Pennsylvania consumers who, since May 12, 2003, received form type collection letters from Debt Enforcement that contained language regarding potential lawsuits as well as mentioning the Sheriff's Department. The action is brought under the federal Fair Debt Collection Practices Act and seeks statutory damages as well as injunctive and declaratory relief.

According to consumers, Debt Enforcement's collection attempts grossly violate the Fair Debt Collection Practices Act. Under the Act, it is forbidden to engage in any communication that is misleading, untrue or coercive when attempting to collect a debt. The consumers allege that Debt Enforcement included, in their initial communication, text, highlighted in bold, that demanded immediate payment of the debt. Additionally, the letters made specific mention of lawsuits that may have already been filed as well as service of such suits on the consumers by the Sheriff's Department. According to consumers, this language was designed specifically to mislead and coerce them into making an immediate payment of the debt. The consumers claim that they were given the impression that unless an immediate payment was made, a lawsuit was to be filed against them and the Sheriff would visit their homes, possibly to collect the debt from them. They claim that no such action was intended by Debt Enforcement and that the warnings were designed strictly to illicit immediate payment from them.

Furthermore, the consumers claim that this alleged coercive language violated the Fair Debt Collection Practices Act by overshadowing and rendering ineffective the statutorily mandated information regarding disputing the debt. Under the Fair Debt Collection Practices Act, consumers have up to 30 days from an initial communication from a debt collector to dispute the validity of the debt under collection. This information must be included in either the initial communication, or a follow up communication within five days of the initial. If a consumer disputes the debt, the debt collector must provide the consumer with factual details verifying the validity of the debt. According to the consumers, the language contained in Debt Enforcement's letters clearly overshadowed this information and created a belief in consumers that the debt could not be disputed, only paid and paid immediately.

For these reasons, the consumers claim that they are entitled to statutory damages of up to $1000 per violation. The consumers also claim that the class is very numerous and includes hundreds, and perhaps thousands of potential claimants.


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