Class Action: Alltran Financial Sent Series of ‘Confusing’ Letters to Consumer

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Alltran Financial LP is on the receiving end of a proposed class action that claims the collection agency made “misleading, confusing, and contradictory representations” in letters sent to the plaintiff.

According to the lawsuit, the plaintiff received a bank statement in May 2018 regarding her Home Depot-branded credit card that indicated a “New Balance” of $1,079.71 and a “Minimum Payment Due” of $364. On June 1, 2018, the case continues, the defendant sent a collection notice that stated a “Total Balance” of $1,079.71 and offered to settle the account for a single payment of $539.86. The suit alleges the agency falsely represented that the account had been accelerated by failing to disclose that only the minimum payment of $364 referenced in the bank statement was due at the time the letter was sent. The complaint says the plaintiff was “misled about whether she could still make a minimum payment on the account to return it to a current status.”

Lastly, the case takes issue with another letter sent by the defendant on June 18, 2018 that supposedly contained a settlement offer with “plainly inconsistent” payment deadlines. From the complaint:

“The settlement conditions in the body in [the letter] require the consumer to tender her first payment by July 3, 2018 (i.e., within 15 days of June 18, 2018), but the coupon for Payment 1 states that the first payment is due on July 1, 2018. The unsophisticated consumer would have no way to know when the first payment is actually due, and would not know whether the settlement would be ‘cancelled’ if her first payment was received on July 2 or July 3.”