The Fair Debt Collection Practices Act (FDCPA) tries to ensure that consumer debtors receive accurate and clear information about their debts so that they can make good decisions about how best to handle them. The complaint for this class action alleges that a debt collection letter is unclear about whether amounts are still be added to a debt and how long the “Total Account Balance” will remain accurate.
The class for this action is
Plaintiff Loretta A. Allberry’s alleged debt involves a Lowe’s Consumer Credit Card issued by Synchrony Bank and expenses incurred for personal, family, or household purposes.
At some point, the debt was transferred to Alorica, Inc., which turned it over to EGS Financial Care, Inc. for collection. The complaint suggests that EGS may be a subsidiary of Allorica, that “Allorica always possesses the beneficial interests in the collection accounts which Allorica’s wholly owned ‘debt collectors’ attempt to collect” and that Allorica is therefore responsible for violations in EGS’s collection letters.
EGS sent Allberry a collection letter dated June 28, 2017, which is attached to the complaint as Exhibit A. This letter shows an “Amount Now Due” of $146.00 and a “Total Account Balance” of $1,862. The complaint claims that it has reviewed other collection letters relating to Lowe’s credit card accounts with Synchrony Bank and that Synchrony may continue to add interest, late charges, and/or other fees.
Because of this, the complaint says the letter should name a date by which Allberry could pay the “Total Account Balance” and satisfy the debt. As it is, Allberry cannot be sure when the amount may go up and therefore has no idea how long a payment of the amount shown will be enough to pay off the debt.
The complaint also says the letter should also specify that the amount may increase because interest, late charges, and/or other fees may be added.
In not clarifying either of these points, the complaint says, the letter is “false, deceptive or misleading” and violates the FDCPA.