A New York woman claims in a proposed class action against Betz-Mitchell Associates, Inc. that the company unlawfully failed to note in a collection letter whether her debt amount may accrue interest and/or fees. Under the Fair Debt Collection Practices Act (FDCPA), the case says, a debt collector such as the defendant has an obligation not only to covey the amount owed, but to do so clearly. The case argues that the defendant’s failure to do so in the notice sent to the plaintiff could leave the unsophisticated consumer uncertain as to whether the amount owed is accruing undisclosed interest, or if the balance listed was the actual amount owed.
“The plaintiff and the unsophisticated consumer would be led to believe that the ‘Balance Due’ would remain as is and that paying the amount due would satisfy the debt irrespective of when payment was remitted,” the complaint asserts.
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