Court Dismisses Tenant Challenge to Landlord's FDCPA Notice

Landlord sued tenant for $47,500 in rent arrears. Before serving court papers, landlord sent tenant a rent demand signed by landlord's attorney, which included a prominent notice that landlord's attorneys were Debt Collectors attempting to collect a debt from tenant, along with a letter informing tenant of his rights under the Fair Debt Collection Practices Act (FDCPA) and NY Admin. Code. Tenant's attorney immediately disputed the debt in writing. In response to landlord's summons and complaint, tenant claimed that landlord's attorney never sent verification of the debt in response to the tenant's written dispute of the debt. Tenant asked the court to dismiss the case.

The court ruled against tenant. There was insufficient proof from which to conclude that landlord's law firm was, as a matter of fact or law, a "debt collection agency" rather than a law firm acting on behalf of its client under the FDCPA. And there was no proof that the law firm failed to verify the debt. The rent demand itself itemized the debt, expressed as monthly rent installments alleged to be due and owing. Tenant also argued that the rent demand was defective because it demanded payment within 14 days, while the FDCPA letter set forth a statutory 30-day period for dispute and verification. But the FDCPA didn't bar landlord from pursuing a nonpayment claim after sending a 14-day rent demand. And, in this case, landlord hadn't even done so immediately after the 14 days had passed. 

Symphony House LLC v. Itzhak: Index No. 652182/2021, 2021 NY Slip Op 32288(U)(Sup. Ct. NY; 11/8/21; Nock, J)