Third Circuit Rules Debt Collection Letter Misleads Consumer on How to Request Validation of the Debt

In Caprio v. Healthcare Revenue Recovery Group LLC, the plaintiff filed a complaint against
Healthcare Revenue Recovery Group, LLC (“HRRG”) alleging violations
under the Fair Debt Collection Practices Act (“FDCPA”) D.C. Civil
No. 2-11-cv-02877 (New Jersey).  On appeal from the New Jersey
District Court, the Third Circuit held that a collection letter
sent by HRRG, could have more than one interpretation using the
“least sophisticated consumer” standard and therefore violated the
FDCPA.

In December of 2012, Caprio received a collection letter from
HHRG attempting to collect an alleged debt.  Caprio argued the
wording in the letter was confusing to the “least sophisticated
consumer” and could encourage him to follow improper procedures
thus violating his rights under the FDCPA.  The letter
received from HRRG stated,
 
“If we can answer any questions, or if you feel you do not owe
this amount, please call us toll free at 800-984-9115 or write us
at the above address. This is an attempt to collect a debt. Any
information obtained will be used for that purpose. (NOTICE: SEE
REVERSE SIDE FOR IMPORTANT INFORMATION).”

On the back of the of the collection letter, HRRG had written
the
FDCPA mandated disclosures:

This is an attempt to collect a debt from a debt collection
agency.  Any information obtained will be used for that
purpose.

Pursuant to
Sec. 809 of the
Fair Debt Collection Practices Act, unless you notify this
office within 30 days after receiving this notice that you dispute
the validity of this debt or any portion thereof, this office will
assume this debt is valid. If you notify this office in writing
within 30 days from receiving this notice that you dispute the
validity of this debt or any portion thereof, this office will:
obtain verification of the debt or obtain a copy of a judgment and
mail you a copy of such judgment or verification. If you request
this office in writing within 30 days after receiving this notice,
this office will provide you with the name and address of the
original creditor, if different from the current creditor.

Under the FDCPA, if a consumer fails to dispute the debt in
writing within 30 days of receipt of the
collection letter, he waives his right to request validation
from the collector.  Caprio argued that a consumer could be
confused by the letter and may be unsure which route to
take….should you call to collector and dispute the debt, which
could essentially waive your right to dispute within 30 days or
should you write a letter, which would be the proper method of
disputing.  While the District Court disagreed with Caprio’s
interpretation of the letter as confusing, on appeal, the Third
Circuit overturned the ruling and concluded that the collection
letter was in fact deceptive and could be misinterpreted.  For
this reason, the Third Circuit concluded that the language on the
front of the collection letter was in violation of the
FDCPA. 

If you are having problems with debt collection or feel your
rights have been violated pursuant to the FDCPA, contact SmithMarco P.C. for a free case review.