Recently, together with our colleagues at Connolly Wells & Gray, LLP, attorneys from Kalikhman & Rayz, LLC initiated a class action against Praxis Financial Solutions, Inc. – an Illinois-based debt collector. As detailed in the complaint, which was filed in the U.S. District Court for the Eastern District of Pennsylvania, Praxis improperly disclosed consumers’ personal identifying information on the face of the envelopes used for collection notices. This practice is unlawful under the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq., as recently declared by the U.S. Court of Appeals for the Third Circuit in Douglass, et al. v. Convergent Outsourcing, ___ F.3d ___, 2014 WL 4235570 (3rd Cir., August 28, 2014). Additionally, letters sent by Praxis included a “false,” non-existent offer of settlement, which also violates the Fair Debt Collection Practices Act.
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