One of the most important pieces of information a debtor wants to know is who has the right to collect the debt—that is, who the current creditor is. The complaint for this class action claims that the collection letter sent by Client Services, Inc. fails to make that clear, in violation of the Fair Debt Collection Practices Act (FDCPA) and the Texas Debt Collection Act (TDCA).
The class for this action is all natural persons to whom Client Services, Inc. mailed a letter to an address in Texas, between June 4, 2017 and June 25, 2018, in the form of Exhibit A, which lists “RE: Synchrony Bank Sam’s Club® Personal Credit” and states, “The above account has been assigned to our organization for debt collection,” but which does not specify the name of the creditor to whom the debt is owed or the name of the entity who assigned the account for collection.
Plaintiff Adela Villarreal allegedly incurred a debt with Synchrony Bank and/or Sam’s Club Personal Credit, on which she allegedly defaulted.
Client Services mailed a debt collection letter to her on or around September 6, 2017. The letter is attached to the complaint for this case as Exhibit A. The complaint claims it is likely the letter was a form letter, one that inserts certain specific information into a general form, and that the letter was therefore sent to a large number of other consumers in addition to Villarreal.
At the top left of the page, the letter reads, “RE: Synchrony Bank Sam’s Club® Personal Credit.” The first paragraph of the letter says, “The above account has been assigned to our organization for debt collection.” However, the complaint says that the letter does not state the name of the creditor to whom the debt is actually currently owed. According to the complaint, the unsophisticated consumer would be in doubt as to whether the letter is legitimate and, if so, to whom the debt must be paid. This is a violation of the FDCPA, the complaint says.
The complaint also details violations of the TDCA. Among other things, it claims, again, that the letter does not disclose “the name of the person to whome the debt has been assigned” and that it uses “a name other than the name appearing on the face of the credit card while engaged in the collection of a credit card debt.”