American Coradius International Sued Over Collection Practices

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In a proposed class action lawsuit, a New York consumer claims defendant American Coradius International LLC broke federal debt collection laws by sending out notices that are likely to be misconstrued by the least sophisticated consumer. Claiming the defendant’s collection notices are open to more than one reasonable interpretation, the plaintiff alleges American Coradius International sent him a communication that failed to note whether the balance owed may increase due to interest or fees. Failure to include such “safe harbor” language, the case claims, constitutes a violation of the federal Fair Debt Collection Practices Act (FDCPA).

“Since interest was accruing per the creditor’s contract the collection notice must inform the consumer that the amount of debt stated in the letter will increase over time,” the lawsuit argues. “Collection letters failing to reference the accrual of interest or waiver of interest are subject to two different interpretations as to the accumulation of interest, rendering them deceptive under [the FDCPA].”