New Suit on PreCollect Letters

Discussion in 'Credit Talk' started by jam237, Dec 29, 2016.

  1. jam237

    jam237 Well-Known Member

    Here's an article on a recent decision on "PreCollect" letters (letters which are sent to collect by the OC, with the Collection Agency's letterhead on it).

    PreCollect Letters Spell Trouble for Creditor under FDCPA - Lexology

    I haven't been able to read the actual case, but from what I've been able to gather.

    A real-estate management company contracted with a collection agency to send precollect letters to consumers, the collection agency was paid a flat rate for the letters, and not a percentage of the results, nor did the letters explain what would happen next (because the collection agency, never even saw any information for the accounts which the letters were involving). Plaintiff sued both the creditor and collection agency for violating the FDCPA, and won.
  2. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Very interesting, thanks for sharing jam and happy new year to you!

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