Charge of FDCPA Violation Dropped by Consumer Against Collection Law Firm

The case had everything you’d expect a case like this to have: a disabled veteran, a collection agency, and allegations of egregious FDCPA violations.

Michael Collier was an Army veteran who sustained severe spine and head injuries. Collier and his wife, a college student at the Univeristy of Phoenix, receive disability payments — which, Collier alleged, are exempt from execution. However, Collier and his wife were sued on a defaulted student loan by a collection lawfirm, Gurstel Chargo, P.A., on behalf of National Collegiate Student Loan Trust 2005-1.

The relevant part from Collier’s complaint is the allegation that an employee of Gurstel Chargo said a catalog of pretty vile things to him on a phone call. “F— you! Pay us your money! You can’t afford an attorney. You owe us. I hope your wife divorces you’re [sic] a–. If you would have served our country better you would not be a disabled veteran living off social security while the rest of us honest Americans work our a– off. Too bad; you should have died.”

As it turns out, if someone made that call to Michael Collier, it was not anyone from Gurstel Chargo, using Gurstel Chargo phones, violating Gurstel Chargo’s compliance practices.

Which is why we now learn that Michael Collier has dropped his FDCPA lawsuit against Gurstel Chargo.

More importantly, as this story from Courthouse News Service points out, “The Colliers were not paid a settlement, the stipulation states.” Though not in every case, it often can be tactily understood that a paid settlement means there may be something to an allegation. In this case, it is safer to say Gurstel Chargo in no way violated the FDCPA in its professional relationship with Collier.

“The outrageous allegations created significant negative publicity that wrongly disparaged our firm and our dedicated professional team,” Gurstel said in a statement. “Following an immediate investigation, we knew that the claims were false and did not happen. We were determined to make sure that the truth came out and we have spent nearly a year defending this case to do so.”