Class Action: Capital Management Services Misrepresented Woman’s Debt in Letter

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A New York consumer claims in a proposed class action that Capital Management Services, LP violated the Fair Debt Collection Practices Act (FDCPA) by sending her a letter that misrepresented her amount of debt.

According to the suit, the plaintiff was mailed a letter from the debt collector in June 2018 that stated, in part:

"Amount Due at Charge-off: $10205.65
Interest Accrued Since Charge-off: $0.00
Non-Interest Charges or Fees Accrued Since
Charge-off: $0.00"

The case argues that by indicating a zero balance for interest and non-interest charges, the letter misrepresented the plaintiff’s debt by falsely implying that such charges could accrue on the obligation in the future.

“[T]he Defendant was not contractually entitled” to apply any fees to the plaintiff’s account, the suit adds, arguing that the company violated the FDCPA by threatening “to take an action it did not intend to take.”