Compliance with Reg F is Not the Same as Compliance With the FDCPA, Says Court

A District Court in New Jersey recently ruled that complying with Reg F does not necessarily equal compliance with the Fair Debt Collection Practices Act (FDCPA). Specifically, the NJ District Court held that although the date of the letter is not a requirement in the Model Validation Notice, failing to include a date in an initial demand that tracks the Model Validation Notice might violate the FDCPA.   

In Ginsberg v. I.C. System, Inc., (Civ Action # 22-1147; Dist ct. NJ 2003), a consumer received an initial demand letter that mirrored the format of Reg F’s Model Validation Notice (MVN). The letter stated a balance as of 1/25/2021 and referenced interest, fees, and payments “between 1/25/2021 and today.” The letter concluded by stating the amount the consumer owed “now.”  

Since the letter was not dated, the consumer filed a lawsuit claiming the debt collector withheld a material term, which made the letter difficult to understand. Without the ability to determine from the letter which date “today” and “now” refer to, the consumer alleged she was misled as to the status of the debt. According to the consumer, the letter’s misleading nature violated the FDCPA.