Class Action: Cavalry Portfolio Services Indicated False Settlement Offer Deadline in Letter

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A proposed class action lawsuit claims Cavalry Portfolio Services, LLC violated the Fair Debt Collection Practices Act (FDCPA) with a collection letter sent to a New York consumer that supposedly stipulated a false deadline for the individual to accept a settlement offer.

The defendant’s August 2017 letter offered the plaintiff three settlement options before stating that the “offer expires 09/28/2017,” the complaint says. The case alleges there was in fact no deadline, and that this statement aimed to “create a false sense of urgency” for timely payment.

“The Defendant intended to give the false impression that if the consumer does not pay the settlement offer by the deadline, then the consumer will have no further chance to settle their debt for less than the full amount,” the complaint reads.

A settlement offer with a deadline alone is not unlawful, the case explains, but the FDCPA mandates that “the debt collector ‘may not be deceitful in the presentation of the settlement offer.’”