Systematic National Collections Sued for Not Abiding by Fair Debt Collection Act |
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A class action has been filed against Systematic National Collections, Inc., a CA based debt collection agency and its President for using threatening language in collecting debts in violation of the Fair Debt Collection Act. The complaint seeks damages, attorney’s fees, litigation expenses and costs.
Specifically, the complaint alleges that Ronnie Steele incurred a debt to Pacific Marine Credit Union for $18.94. The defendant attempted to collect the debt and sent letters dated April 20, May 4 and May 18, 2004. The first and second letters stated that Steele’s credit may be damaged by not paying the debt. The third letter stated in part, “Despite our previous letters to you, you still have not paid the balance of your past due account. If you continue to ignore our requests to pay, you are putting your future credit rating in serious jeopardy and are forcing us to consider further collection efforts against you.”
Steele alleges that consumers have thirty (30) days from the receipt of the first notice to dispute the debt according to the Fair Debt Collection Act and that the small amount owed would not constitute further legal action. Therefore, the defendant’s language constitutes a threat of unintended legal action.
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