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Debtor Sues Collection Firm for Using Threatening Language

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Case ID: 3967 | Credit / Debt | 11/29/2004

A class action lawsuit has been filed in the District Court of Massachusetts against the Daniels Law Offices, PC for violations of the Fair Debt Collection Practices Act. Class members seek declaratory judgment, damages, costs and attorney's fees.

Specifically, the complaint alleges that on or about 10/27/93, the Gold obtained an unsecured, revolving line of credit from Household Bank. Between 1993 and 2002, Gold experienced a number of financial and personal setbacks and could not pay his bills as they became due. On 11/8/02, he received a notice from Household that payment was overdue and required him to make a minimum payment of $295 to return his account to "active" status.

Gold retained the services of an attorney, Philip Hendel, who wrote to Household and informed them that all future correspondence should be directed to him and not to Gold.

Household then assigned the account to Daniels for collection, but neglected to inform them that correspondence should only be sent to Gold's attorney. On January 9, 2003, Daniels sent Gold a letter demanding payment of $8,688.45 which represented $7,555.20 in principle and interest and $1,133.28 in attorney's fees. Several other letters followed including a letter that threatened, "If you do not contact us, we will have no choice but to have you arrested and jailed for failing to pay your debts." Gold is now suing the defendants for violation of the FDCPA.


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