Cavalry Portfolio Services Accused of Sending 'Deceptive' Letters

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Cavalry Portfolio Services LLC is facing a proposed class action lawsuit filed in New York that claims the debt collector failed to clearly and accurately disclose the amount of a consumer’s alleged debt. The plaintiff alleges that she received a collection letter from Cavalry that indicated an “outstanding balance,” but neglected to mention whether this balance would increase due to interest or other fees. The complaint cites a similar case that argued the following:

“On one hand, an unsophisticated consumer could reasonably conclude that the balance was a fixed amount that would not be subject to further interest, late fees, or other charges. On the other, an unsophisticated consumer could just as reasonably determine that the balance would continue to grow over time as interest accrued. One of those meanings would necessarily be inaccurate. Therefore, the court finds that Defendants' letters were deceptive as a matter of law.”