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Misleading or Confusing Debt Collection Letter

Debt Ball and Chain

The Fair Debt Collection Practices Act (FDCPA) intends to curb abuse by third-party debt collectors and ensure that consumer debtors have adequate information to make the best decisions possible as to what to do about debts. The complaint for this class action claims that Synergetic Communication, Inc. and Community Health Network, doing business as EOS CCAA, violated the FDCPA with the collection letter sent to the plaintiff in this case. The letter does not make clear that the debt is time-barred, that no one can currently sue for it, but that a payment may revive the statute of limitations and the ability to sue.

Synergetic Communication Logo

Consumer debts can become “stale.” That is, after a certain period of time, no one can sue the consumer to collect the debt. This period of time is known as the statute of limitations, and it varies from state to state. The complaint for this class action claims that Synergetic Communication, Inc. did not clearly tell consumers with stale debt that they could no longer be sued by anyone for the debt—unless they made a payment and revived the statute of limitations.  

Bill with Words "Final Notice" Stamped in Red

Consumer debtors often do not know their rights under the law, which is why the Fair Debt Collection Practices Act (FDCPA) requires such precision in the language used in third-party debt collection letters. The complaint for this class action claims that AvanteUSA, Ltd., collecting on behalf of Cascade Capital, LLC, made an important omission in its collection letters in stating the validation rights of consumers: It did not tell them that certain requests had to be made in writing in order to preserve their rights.

One Hand Giving Another Money

Congress passed the Fair Debt Collection Practices Act (FDCPA) to stop deceptive and abusive practices in the collection of consumer debts. The complaint for this class action claims that Transworld Systems violated this law when it insinuated that the amount of a consumer debt might rise and that therefore it might be an advantage for the consumer to pay it immediately. It did this by presenting the amount of the debt as the “Current Balance Due.”

Figure Carrying Letters D-E-B-T on Its Back

The Fair Debt Collection Practices Act (FDCPA) is meant to protect consumers from abuse and misleading or confusing representations in the collection of debts. The complaint for this class action claims that Van Ru Credit Corporation sent consumers letters that falsely implied that it would be to the consumers’ advantage to pay their debts sooner rather than later because the debt amounts might increase.

Papers on Clipboard Saying "Debt Collection"

The collection letters sent out by Midwest Receivable Solutions, LLC are deficient in two ways, says the complaint for this class action: They do not tell the recipient that requests for validation of the debt should be made in writing and they are confusing about the amount of the debt. According to the complaint, they both violate the federal Fair Debt Collection Practices Act (FDCPA) as well as the Wisconsin Consumer Act (WCA).

Foreclosure For Sale Sign in Front of House

Trott Law is putting up $7.5 million to settle a class action alleging that it violated the Fair Debt Collection Practices Act (FDCPA) and the Michigan Regulation of Collection Practices (RCPA) in its letters sent in connection with non-judicial foreclosures in Michigan.

Bill Stamped with Words "Past Due"

The complaint for this class action alleges that debt collection letter sent out by Nationwide Credit & Collection, Inc. (NCC) was truly confusing as to the total amount the consumer owed. It quoted an amount, but made vague reference to “other accounts” which may be owed. The lack of clarity, the complaint says, is a violation of both the Fair Debt Collection Practices Act (FDCPA) and the Wisconsin Consumer Act (WCA). 

Papers on Clipboard Saying "Debt Collection"

Consumers have a right to dispute their debts within a certain period of time after receiving a debt collection letter. In fact, a notice of consumers’ rights of dispute is one of the things that the Fair Debt Collection Practices Act (FDCPA) requires to be provided to consumers. The complaint for this class action claims that Midland Credit Management, Inc. (MCM) refused to accept such a dispute from a consumer, and that it provided misleading information about the amount of the debt.

Bill Stamped with Words "Past Due"

One of the important pieces of information that a consumer debtor is entitled to is the name of the current owner of the debt. So says the Fair Debt Collection Practices Act (FDCPA). However, the complaint for this class action claims that a debt collection letter sent by LTD Financial Services, LP does not provide this information. It also alleges that the letter sets false deadlines on settlement offers.

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