Have you ever received a letter threatening to sue to collect $388? Those
fortunate souls who are unfamiliar with the court system might believe
someone would actually sue to collect $388. But it is just not worth it
and debt collectors know it.
Here’s an interesting article from Time regarding debt collectors who threatened to sue even when they knew suit
A class action was brought against the debt collectors alleging violation
of the Fair Debt Collection Practices Act (“FDCPA”). The FDCPA
prohibits debt collectors from making false or misleading statements in
attempting to collect a debt. The debt collectors’ letter stated
that failure to pay the debt “could” result in a lawsuit.
Thus, they claimed, the letters did not speak of an imminent lawsuit and
did not violate the FDCPA. The District Court agreed with this reasoning
and dismissed the claims. The Third Circuit Court of Appeals, however,
did not agree and reversed the District Court, holding that the District Court must use a “least sophisticated
debtor” standard of review in determining whether the statements