Class Action: Alpha Recovery Corp. Misled Consumer with ‘Inconsistent’ Debt Amount

New to ClassAction.org? Read our Newswire Disclaimer

Alpha Recovery Corp. is staring down a proposed class action filed over a collection letter that allegedly failed to clearly convey the plaintiff’s amount of debt.

The New York consumer says she received a notice from the defendant in January 2018 that contained an itemized list of charges: 

"Debt Due as of Charge-off: $5,095.83
Interest accrued since Charge-off: $556.57
Non-Interest Charges or Fees Accrued since Charge-off: $213.23
Payments Made on Debt since the Charge-off: $0.00
Current Balance Claimed Due: 5,011.57.”

The case argues the list misled the plaintiff as the charges were “inconsistent” and did “not make sense.” From the complaint:

“A debt that was $5,095.83 at charge-off and has accrued interest of $556.57 since charge-off and non-interest charges or fees of $213.23 since charge-off cannot possibly have a current balance of $5,011.57.”

Although the letter indicated an interest charge, the suit continues, the defendant further confused the plaintiff by failing to state whether the debt amount was still subject to increase.