Alltran Financial Hit with FDCPA Class Action

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Alltran Financial, LP is on the receiving end of a proposed class action lawsuit alleging violations of the Fair Debt Collection Practices Act (FDCPA). The plaintiff, a New York man, says the debt collector sent him a letter containing the following text:

“As of the date of this letter you owe the amount stated above. Because your account continues to accrue interest and may accrue late and other charges on all owed balances pursuant to your agreement with the creditor, the total balance on the day you pay may be greater.”

According to the suit, the notice is misleading to the unsophisticated consumer, i.e. the plaintiff, because it fails to specify the interest rate, the nature of the “other charges,” when such charges will be applied, how much of the balance is principal, and any other information that would allow the recipient to calculate the true amount of money owed. As a result of these non-disclosures, the complaint says, Alltran Financial failed to meet the FDCPA’s requirement to clearly communicate the amount of consumers’ debts.