Debt collector sued for threatening lawsuit

SHERMAN - A Denton County woman has filed a lawsuit against a debt collector for violating the Fair Debt Collection Practices Act by threatening to file a lawsuit against her during the 30-day dispute period allowed under federal law. 

Kelly Fosen filed suit against Weinsten & Riley P.C. on Oct. 17 in the Eastern District of Texas, Sherman District of Texas.

According to the lawsuit, Fosen received a debt collection letter from the defendant on May 15 in connection with a debt from Discover Bank. The letter told Fosen that she had 30 days to make arrangements to settle the debt or dispute the debt before the defendant would take “appropriate action” including bringing a lawsuit against her.”

The defendant is accused of overshadowing the disclosures required by the Fair Debt Collection Practices Act by threatening to take immediate legal action against Fosen during the 30-day dispute period and disclaiming the validity of the disclosures in the same communication.

The defendant is also accused of violating federal law by using false and misleading representations or means to collect or attempt to collect an alleged debt from Fosen.

The plaintiff is asking for an award of statutory damages, actual damages, attorneys’ fees, court cost, and interest.

Fosen is represented by Joseph Panvini of Weisberg & Meyers in Phoenix, Ariz. A jury trial is requested.

U.S. District Judge Richard A. Schell is assigned to the case.

Case No. 4:12-cv-00662