A debt collecting law firm that tacked on $140 in court costs to a consumer's credit card debt violated the Fair Debt Collection Practices Act (FDCPA) by misrepresenting the amount owed, a federal judge in Buffalo has found. Western District Judge William Skretny (See Profile) said Cohen & Slamowitz provided no legal authorization for passing along a court filing fee to the debtor. Skretny also certified a class action based on the claim.
The dispute in Hallmark v. Cohen & Slamowitz, 11-cv-842, began when the debtor, Michael Hallmark, defaulted on a credit card debt. Cohen & Slamowitz was retained to collect the debt. In an August 2011 letter to Hallmark, the firm stated that the debtor owed $1,835. However, in a letter two weeks later, the balance was higher, reflecting the $140 the firm sent to Buffalo City Court to commence a debt-recovery action.
