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New York man alleges Hayt Hayt & Landau gave erroneous tax advice

By Robbie Hargett | Mar 16, 2016

BROOKLYN, New York (Legal Newsline) - A New York man is suing a New Jersey debt collector for allegedly giving incomplete and misleading tax advice.


Steven Sutton, individually and for all others similarly situated, filed a class action lawsuit March 8 in U.S. District Court for the Eastern District of New York against Hayt Hayt & Landau LLC of Eatontown, New Jersey, alleging violations of the Fair Debt Collection Practices Act (FDCPA).

Some time prior to Jan. 29, according to the suit, Sutton incurred an obligation to Bank of America, which contracted the defendant to collect on its debt. Hayt Hayt & Landau then contacted Sutton on Jan. 29, stating: "As a result of this settlement, if the amount canceled on this debt equals or exceeds $600, the IRS may require Bank of America to report the amount canceled on a Form 1099-C."

The suit alleges the defendant's communication to Sutton violates the FDCPA in its vagueness and incompleteness in that its language may be understood by the consumer to mean that IRS regulations require that it report all forgiveness of debt, when, in fact, the creditor would not be required to report a forgiven amount greater than $600 if the amount contained interest.

Sutton and others in the class seek statutory and actual damages, declaratory and injunctive relief, interests and attorney fees and expenses. They are represented by attorney Alan J. Sasson of the Law Office of Alan J. Sasson in Brooklyn.


U.S. District Court for the Eastern District of New York Case number 1:16-CV-01152-ILG-CLP

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