Aargon Collection Agency is facing a proposed class action filed by a Texas consumer who claims the company falsely threatened in a collection letter that his balance would increase.
The lawsuit says the defendant, Aargon Agency, Inc., mailed the plaintiff a notice in June 2017 regarding an obligation supposedly owed to Texoma Medical Center – UHS. After listing the creditor’s name, the amount owed, and other information, the collection notice reportedly stated:
“As of the date of this letter, you owe the Total Balance Due listed above. The amount may vary due to payments and/or accrual of interest. Because of interest that may vary from day to day the amount due on the day you pay may be greater. Hence, if you pay the amount shown above, an adjustment may be necessary after we will receive your payment…”
Despite knowing full well that the plaintiff’s balance would not vary at any time, Aargon stated that the “amount due on the day you pay may be greater” as a “deceptive collection tactic” aimed to get the man to make payment immediately, the lawsuit alleges. Such conduct serves the dual purpose of not only threatening the consumer into making quick payment, but also discouraging him from exercising of his Fair Debt Collection Practices Act (FDCPA) right to request validation of or dispute the debt within 30 days, the case argues.
“Stating that the account may accrue interest and other charges is materially misleading to [the plaintiff] since it [is] a knowingly false statement,” the complaint reads.