CBE Group Class Action: Did Debt Collector Seek Payment After You Paid?

unlawful debt collection

Lawsuit Alleges Illegal Debt Collection Practices Over Paid Debts

A debt collector tried to “extort” a New York consumer into paying a debt he had already paid, a new class action lawsuit alleges.

Plaintiff Mayer Silberstein filed the class action lawsuit against The CBE Group Inc. on June 3 in a New York federal court, alleging violations of the The Fair Debt Collection Practices Act.

According to the lawsuit, CBE Group violated the act when it sent Silberstein a letter asking him to pay an overdue debt with Verizon that he says he already paid. 

“Defendant’s attempt to unlawfully collect on a debt that was already settled in full is a direct violation of [the law],” the lawsuit says.

Consumer Claims Debt Paid Twice, But Collection Agency Ignores Settlement

Silberstein says his story began in February 2023, when he incurred a debt with Verizon Wireless. 

He says Verizon then contracted with another company, I.C. System Inc. (ICS), to collect the alleged debt. Silberstein says he settled the debt — less than $200 —- with the company and got a letter from them on May 16, 2023 indicating that the balance on his account “was now $0.00 based on the settlement.” 

Silberstein says he believed his account with Verizon was then settled and closed. However, he says Verizon then contracted with CBE Group to collect the debt again. 

On June 3, 2023, CBE Group sent Silberstein a collection letter to collect on the same alleged debt, he says, with the letter not making reference to the earlier payment he had made to ICS.

“Defendant should have done its due diligence before collecting on a debt that was previously settled in full,” the lawsuit states. Silberstein adds that the letter “confused” him and “misled him to believe that the debt still existed.”  

Lawsuit Alleges CBE Group Tried to Coerce Payment on Settled Debt

Under the law, a debt collector may not make a false representation regarding the “the character, amount, or legal status of any debt,” the class action lawsuit states.

CBE Group misrepresented the existence of the debt, Silberstein alleges. 

“Given the previous settlement with ICS, this entire letter is just an attempt to improperly extort money from Plaintiff and coerce Plaintiff to pay,” the lawsuit argues. 

Not only that, the letter made Silberstein extremely upset, he says, as well as concerned that his previous payment was a scam and he would suffer further by having to pay the debt again as well as having his credit score harmed.

Consumer Lawsuits Crack Down on Abusive Debt Collection Practices

The Fair Debt Collection Practices Act is a U.S. federal law enacted in 1977 to regulate the behavior of third-party debt collectors and to protect consumers from abusive debt collection practices. Over the years, there have been several significant settlements under the FDCPA. 

In 2020, Encore Capital Group and its subsidiaries, including Midland Funding LLC, agreed to pay more than $15 million in a settlement with the Consumer Financial Protection Bureau to end allegations that the company was accused of filing lawsuits without proper documentation and using false affidavits to collect debts .

In 2017, Sherman Financial Group reached a more than $9 million deal with The Federal Trade Commission over allegations that it used deceptive practices in debt collection. The settlement included monetary relief for consumers and changes to the company’s business practices to ensure compliance with the FDCPA.

In the CBE Group unlawful debt collection class action lawsuit, Silberstein is seeking damages, fees, costs and a jury trial. He is looking to represent anyone in New York to whom The CBE Group sent a collection letter attempting to collect a consumer debt that was previously paid off in the past year.

Case Details

  • Lawsuit: Silberstein v. The CBE Group Inc. 
  • Case Number: 7:24-cv-04224-NSR 
  • Court: U.S. District Court for the Southern District of New York.

Plaintiffs' Attorneys

  • Rami M. Salim  (Stein Saks PLLC)
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