Consumer complaint received 2023-05-08
Product: Debt collection — Other debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Makower Abbate Guerra Wegner Vollmer PLLC (MI)

Issue 1 : We have not been provided with Validation of the Debt in accordance with Fair Debt Collection Practices Act. 
We repeatedly requested validation of the debt by email after not receiving sufficient response we hired XXXX XXXX XXXX who again asked for validation of the debt and a breakdown of the amounts owed. 
Once we asked for validation of the debt collector ( Law firm ) must cease collection activity which includes placing liens until validation of a debt is provided. The law firm has the burden of showing that a ledger is sufficient under the Fair Debt Collection Practices Act. 

Issue 2 : XXXX is considered a debt collector and must follow the Debt collector guidelines. 
CASE LAW : TODD AND MARICA BATES, PLAINTIFFS, V. GREEN FARMS CONDOMINIUM ASSOCIATION, THE HIGHLANDER GROUP, AND MAKOWER ABBATE GUERRA WEGER VOLLMER, PLLC, DEFENDANTS, mortgage foreclosure is debt collection under the Act. Lawyers who meet the general definition of a " debt collector '' must comply with the FDCPA when engaged in mortgage foreclosure .... In this case, the district court held that RACJ [ the defendant Law Firm ] was not engaged in debt collection when it sought to foreclose on the Klie property. That decision was erroneous, and the judgment must be reversed. Citing Glazer v. Chase Home Fin. LLC, 704 F.3d 453, 460 ( 6th Cir. XXXX ). 
Issue 3 : Debt collection process was not followed. Once we requested validation of the debt the collection activity must cease.

Case Law : CHRISTINE ESSIQUE, et al., Plaintiffs, v. WALNUT WOODS CONDOMINIUM ASSOCIATION, et al., Defendants. Case No. 2:15-cv-12049. 
" When interpreting the FDCPA, we begin with the language of the statute itself [. ] '' Schroyer v. Frankel, 197 F.3d 1170, 1174 ( 6th Cir. XXXX ). Section 1962g of the FDCPA mandates a specific sequence of actions from a debt collector : in the initial contact with the consumer ( or within 5 days of initial contact ) the debt collector must provide notice that the consumer has 30 days to dispute the debt. 1692g ( a ) ( 4 ). If the consumer disputes the debt, the debt collector must mail " verification of the debt '' to the consumer. 1692g ( b ). " [ T ] here are no time limits for a debt collector to validate the debt under 1692g ( b ). '' Purnell v. Arrow Fin. Servs., LLC , 303 F. App'x 297, 303-04 ( 6th Cir. XXXX ). But until the debt collector provides verification to the consumer, the debt collector must " cease collection of the debt. '' Id. ( quoting 1692g ( b ) ). 
Issue 4 : XXXX XXXX XXXXXXXX we received a response to our request for validation of the debt that admits the management company did not send it, and they still did not validate the debt as requested. They stated they gave us a letter that stated it was based on the XXXX budget. However, this was not sufficient because they were required to provide written validation of the debt from the creditor. 
Case Law : XXXX XXXX, et al., Plaintiffs, v. WALNUT WOODS CONDOMINIUM ASSOCIATION, et al., Defendants. Case No. 2:15-cv-12049.

But a " debt collector must verify a disputed debt even if he has included proof of the debt with the first communication [. ] '' Bridge v. Ocwen Fed. Bank, FSB, 681 F.3d 355, 361 ( 6th Cir. XXXX ) ( quoting FTC Staff Commentary, 53 Fed. Reg. 50097-02, 50106 ( XXXX XXXX, XXXX ) ). 
Issue 5 : Lien on Property Once we asked for validation of the debt, they were required to properly validate the debt in order to resume the collection activities. They did neither. Instead, they filed a lien on the property. This violates 1692g ( b ) of the FDCPA. A Request to validate a debt must be fulfilled before filing a lien.

Filing a lien is debt collector activity-A debt collector must provide validation of debt prior to filing a lien and the debt collector has the burden to show that a ledger is validation of the debt.

Case Law : CHRISTINE ESSIQUE, et al., Plaintiffs, v. WALNUT WOODS CONDOMINIUM ASSOCIATION, et al., Defendants. Case No. 2:15-cv-12049. 
Citing : Camille HADDAD, Plaintiff-Appellant, v. ALEXANDER , ZELMANSKI, DANNER & FIORITTO, PLLC, Defendant-Appellee. 758 F.3d 777 ( XXXX ) In a strikingly similar case, the Sixth Circuit in Haddad concluded by implication that filing a lien is a debt collection activity. Haddad, 758 F.3d at 786. In Haddad, a condominium association hired a firm to collect unpaid association fees from the plaintiff, a condominium owner. Id. at 779. The owner disputed a portion of the debt. Id. at 785. The firm had previously sent the owner an " accounting ledger '' but after the owner again disputed the debt the firm failed to provide verification. Id. Instead, the debt collector " continued its efforts to collect this portion as well as the entirety by sending a letter demanding payment and placing a lien on [ the owner 's ] condominium. In doing so, the firm violated 15 U.S.C. 1692g ( b ). '' Id. at 786. Similar to Haddad, Jones placed a lien on Essique 's condominium before verifying her debt. Id.

Issue 6 : Inconsistent amounts on the ledgers sent. We asked for the correct amount. If there is inconsistent amounts the ledger sufficient validation of the debt.

Case Law : CHRISTINE ESSIQUE, et al., Plaintiffs, v. WALNUT WOODS CONDOMINIUM ASSOCIATION, et al., Defendants. Case No. 2:15-cv-12049.

But a " debt collector must verify a disputed debt even if he has included proof of the debt with the first communication [. ] '' Bridge v. Ocwen Fed. Bank, FSB, 681 F.3d 355, 361 ( 6th Cir. XXXX ) ( quoting FTC Staff Commentary, 53 Fed. Reg. 50097-02, 50106 ( XXXX XXXX, XXXX ) ). Additionally, the XX/XX/XXXX, ledger and the XX/XX/XXXX, verification were not identical : at least one discrepancy ( the June late fee ) existed between the two. Compare Letter, ECF No. 18-2, with Verification, ECF No. 18-3. Therefore, Jones has not shown the absence of a genuine material factual dispute over whether the ledger satisfied the FDCPA verification requirement of 1692g ( b ).