NJ Firm cannot dodge claims on debt collection costs

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By Kevin Penton (July 28, 2022, 3:15 p.m. EDT) – A New Jersey law firm is facing allegations in a putative class action lawsuit that it unlawfully sought to pocket collection costs in the recovery debt for a dentist, as the company qualifies as a collector under federal law, a federal judge has ruled.

U.S. District Judge Claire C. Cecchi denied Desh Law’s motion to dismiss, ruling on Wednesday that the company is a debt collector under the Fair Debt Collection Practices Act, in her opinion.

The judge agreed with plaintiff Cathelene Louis that the dentist would not be the right defendant in the case and that Desh Law…

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