Alltran Financial, LP is on the receiving end of a New York consumer’s lawsuit wherein the man alleges the collection agency failed to disclose that his American Express debt was accruing interest and fees.
According to the proposed class action, the defendant sent an initial notice to the plaintiff in December 2017 that stated, “As of the date of this letter, you owe $94,016.13.” The case says that upon reading this letter, the consumer believed his account balance was static, as the notice supposedly did not explicitly state that the amount was subject to change.
In January 2017, the case continues, the plaintiff received another letter, this time indicating that his debt amount had increased to $95,623.13. According to the lawsuit, the change in balance was the result of undisclosed interest and fees that were applied to the debt. The suit argues that the plaintiff was misled as to his debt amount and was unable to properly prioritize his debts due to the company’s misrepresentations.