Capital Management Services Facing FDCPA Lawsuit

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Capital Management Services, LP is facing claims that it violated the Fair Debt Collection Practices Act by failing to clearly communicate in collection letters the amount of consumers’ alleged debts. In a proposed class action lawsuit filed against the debt collector, a New York man claims he received a letter from Capital Management that failed to specify whether his balance would be subject to interest or late fees. He argues that the defendant’s non-disclosures left him unable to determine the true amount of his alleged debt and whether payment of the amount in the letter would actually settle his account and cease collection efforts. As a result, the suit argues that Capital Management Services violated the FDCPA and that the plaintiff and proposed class members are entitled to damages.