Consumer complaint received 2018-11-02
Product: Debt collection — Credit card debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: ENCORE CAPITAL GROUP INC. (NY)

I herein do file this complaint with your office against XXXX XXXX XXXX and XXXX XXXX XXXX XXXX ( Attorneys for the XXXX XXXX XXXX ). I seek for your help to dismiss all the herein described illegal charges. 

Grounds of Complaint FRAUDULENT ACTIVITY FALSE AND MISLEADING REPRESENTATIONS UNFAIR PRACTICES FAILURE AND REFUSAL TO VALIDATE THE DEBT UPON THE REQUEST FALSIFICATION OF THE DOCUMENTS VIOLATIONS OF FEDERAL DEBT COLLECTION LAWS _____________________________________________________________________ STATEMENT 1. I was a customer for XXXX XXXX  XXXX for a few years. Because of change in the interest rate I made my decision to close the credit card with them and mailed the last final payment in order to clear outstanding balance. I did not receive any following notices from XXXX XXXX XXXX, that made me to believe that I do not owe them any money, and my balance is {$0.00}. 

2. On XX/XX/XXXX, XXXX XXXX XXXX, filed a complaint against me in XXXX Civil Court claiming it had purchased my Credit Card account from XXXX XXXX XXXX XXXXXXXX XXXX and demanding {$960.00}, and obtained a judgment against me in total amount of {$1200.00} on XX/XX/XXXX. 

XXXX XXXX presented identical Affidavits of its employees XXXX XXXX and XXXX XXXX. 

XXXX XXXX in her affidavit is claiming that my account had been purchased by XXXX XXXX XXXX XXXX, XXXX on from XXXXXXXX XXXX XXXX XXXXXXXX. XXXX, and then my account was purchased by XXXX XXXX XXXX XXXX from XXXX XXXX XXXX XXXX, XXXX. 

In the other hand XXXX XXXX in her affidavit is claiming the following ; I. XXXX XXXX XXXX XXXXXXXX. account is XXXX ( *she presented false account ), II.  As of XXXX the account balance is {$980.00} ( *she presented false amount ), III.  Loan was charged off on XXXX ( *she presented false date ). 

In addition, XXXX XXXX presented the following ; I. AFFIDAVIT OF BULK SALE OF ACCOUNTS stating that XXXX XXXX XXXX XXXX XXXX sold a pool of accounts to XXXX XXXX XXXX on XX/XX/XXXX, XXXX. ASSIGNMENT AND BILL OF SALE dated XX/XX/XXXX, XXXX. AFFIDAVIT OF BULK SALE OF ACCOUNTS stating that on XX/XX/XXXX XXXXXXXX XXXX XXXX XXXXXXXX. sold a pool of accounts to XXXX XXXX XXXX XXXX, XXXX. 

I placed the request with them in to provide me with the following ; I. Copy of Contract with Loan Originator Verification of the debt, II. Proof of the ownership of the debt, III. Copy of the agreement with the initial lender/loan originator, IV. Itemized bill. 
However, XXXX XXXX, XXXX FAILED TO RESPOND to my request for verification of the debt and documentation concerning the amount and ownership of the debt, nor the agreement with the lender/loan originator. 

IMPORTANT : At no time did I purposely default in this case, and my XXXX XXXX is based on the following annexed Exhibit showing a copy of a printout I obtained of my XXXX Customer Information File of my credit card account, dated XX/XX/XXXX, bearing Stamp from XXXXXXXX XXXX XXXXXXXX ( not XXXXXXXX XXXX XXXX XXXXXXXX. ) showing the following : I. My name and address and my social security number, II. My Official Account Number with XXXX XXXX XXXX, XXXX ( date ) : XX/XX/XXXX, III. Balance : XXXX, IV. Information : Charge off. That document explains that on XX/XX/XXXX, for the sum of {$330.00}, the account was Charged Off, which is CONTRARY to the Midland 's Complaint filed on XX/XX/XXXX, and dated XX/XX/XXXX claiming the sum {$980.00}, and claiming my Credit account was originally owned by XXXXXXXX XXXX XXXX XXXX. 

All the Claims in the Affidavits presented by XXXX XXXX XXXX are false and inconsistent. Such misrepresentations to the Court clearly show Midland and its XXXX XXXX XXXX XXXX 's recurring deceptive acts and practices while engaging in debt collections of New York Consumers, causing harm and violations of consumer protection laws. 

4. XXXX XXXX XXXX was able to obtain a Default Judgment against me, ( because I  did not receive the notice from court on time ) and served an Income Execution dated XX/XX/XXXX, to company where I work part time ( as Independent Contractor )  demanding the sum of {$1300.00}. 

5. I did file for order to show cause to vacate the default judgment entered against me. However, the order vas denied on XX/XX/XXXX by XXXX XXXX, Judge of the Civil Court, who was negligent and inconsiderate regarding all true facts I brought to his attention. Mr. XXXX XXXX made his decision not based on any true facts I tried to present. His decision was based on the fact that I missed previous hearing. The reason why I did miss hearing was because I did not receive postcard from the Court. 

Since that day XX/XX/XXXX XXXX XXXX XXXX having default judgment against me did not take any farther actions. However, on XX/XX/XXXX I received in a mail copies of Court document I hereby attach for your review. I believe they intentionally never took any farther actions for more that 2 years until now, in order to accrue additional interest on the amount claimed by them. 
_____________________________________________________________________ *IMPORTANT : XXXX XXXX XXXX XXXX operates under a variety of names including XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX.. All of the XXXXXXXX XXXX XXXX XXXXXXXX companies are owned by Encore Capital Group , Inc. , a public company traded on the XXXX : under symbol XXXX. 
XXXX XXXX, XXXX and its affiliates regularly make debt collection phone calls from ( XXXX ) XXXX and ( XXXX ) XXXX and are located at : XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, California XXXX XXXX XXXX and its affiliates are accused violators of federal debt collection laws known as the Fair Debt Collection Practices Act ( FDCPA ) and are sued regularly by consumers for these violations. 
The FDCPA is a federal law that regulates the collection of consumer debts. It precludes third party debt collectors from using false, misleading, deceptive and harassing debt collection tactics. 
807 False or misleading representations [ 15 USC 1962e ] A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section : ( 1 ) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.

( 2 ) The false representation of ( A ) the character, amount, or legal status of any debt ; or ( B ) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt. 
808. Unfair practices [ 15 USC 1692f ] A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section : ( 1 ) The collection of any amount ( including any interest, fee, charge, or expense incidental to the principal obligation ) unless such amount is expressly authorized by the agreement creating the debt or permitted by law. 
809. Validation of debts [ 15 USC 1692g ] 5 ( b ) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection ( a ) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. 
Collection activities and communications that do not otherwise violate this title may continue during the 30-day period referred to in subsection ( a ) unless the consumer has notified the debt collector in writing that the debt, or any portion of the debt, is disputed or that the consumer requests the name and address of the original creditor.

814. Administrative enforcement [ 15 USC 1692l ] ( a ) Compliance with this title shall be enforced by the Federal Trade Commission, except to the extend that enforcement is specifically committed to another agency _____________________________________________________________________ *IMPORTANT : Under the language of GBL 349 ( a ), " deceptive acts and practices '' in the conduct of any business, trade, or commerce " are hereby declared unlawful. '' In addition to granting the NY Attorney General the authority to seek injunctions and to pursue claims for restitution, see GBL 349 ( b ), the statute grants a " right of action '' to " a person who has been injured by reason of any violation of this section. '' GBL 349 ( h  ). 

As a threshold matter, a party claiming the benefit of GBL 349 " must charge conduct that is consumer oriented. 

GBL 349 " prohibits deceptive and misleading business practices and its scope is broad indeed. '' XXXX v XXXX XXXX. XXXX, XXXX XXXX at XXXX. The statute, on its face, [ *7 ]  applies to " virtually all economic activity, '' providing the courts with the authority to " cope with the numerous, ever-changing types of false and deceptive business practices which plague NY consumers. 


XXXX XXXX XXXX 's violation of GBL 349 is through wrongful acts and omissions including the following deceptive acts and practices : 1. bringing a cause of action against the defendant pursuant to a retail installment credit agreement without having in its possession admissible proof of any agreement ; 2. bringing an account stated claim against the defendant without having in itspossession admissible proof and/or any personal knowledge that any accountstatements were mailed to or received by the defendant ; 3. attempting to collect on an assigned account when the defendant had not beennotified of any assignment ; 4. commencing a lawsuit for an allegedly assigned debt without a validassignment actually having taken place ; 5. attempting to collect amounts allegedly due without any indication how theamounts were calculated ; 6. attempting to collect amounts, including contractual interest, withoutadmissible proof of legal authority to collect the same ; Such deceptive acts and practices by the plaintiff happen while engaging in a debt collection business " directed at consumers. '' Its activities " are part of a recurring practice '' of using a " business model '' that has a tendency to " deceive and mislead '' a significant percentage of New York consumers. 

Finally, while the statute does not require proof of justifiable reliance, a party seeking compensatory damages must allege that the deceptive acts and practices at issue " caused actual, although not necessarily pecuniary, harm. '' XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX at XXXX ; accord, XXXX XXXX XXXX XXXX. XXXX, XXXX XXXX at XXXX. A party adequately pleads a claim for damages under GBL 349 by alleging the retention of an attorney as a result of opponent 's offending conduct. XXXX v XXXX XXXX. XXXX, XXXX. If successful, the party may recover " actual damages in any amount, '' together with treble damages, punitive damages, and attorney 's fees. XXXX v XXXX XXXX. XXXX, XXXX XXXX at XXXX. 

As explicitly provided in GBL 349 ( g ), the statute applies to " all deceptive acts and practices, whether or not subject to any other law of this state. '' HOWEVER, Midland 's conduct in my case may also violate other laws which authorize other remedies, see, e.g., the FDCPA ( 15 USC 1692e ), Judiciary Law 487, and Rule 130 ( 22 NYCRR 130-1.1, 130-1.1-a )