Class Action Claims FMA Alliance, JH Portfolio Understated Amount of Consumer’s Debt

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JH Portfolio Debt Equities LLC, which does business as JH Capital Group, and FMA Alliance Ltd. have been hit with a proposed class action in which a consumer claims the debt collectors misstated the amount of her alleged obligation. According to the suit, the plaintiff received a “Notice of Assignment” from her previous creditor informing her that JH Capital had purchased her debt, which amounted to $717.72 in total and was made up of $398.75 of principal, $83.97 in interest, and $235.00 in fees. The next day, January 9, 2018, the woman allegedly received a letter from FMA that referenced the same account and indicated that she owed a “total balance” of $398.75. The case argues that the defendants understated the amount of the debt by only including the principal amount and neglecting to mention the added interest and fees.

“The unsophisticated consumer who paid the understated amount would be misled into believing that the account was paid in full when in reality, almost half of the debt remains unpaid,” the complaint points out. The letter, the suit argues, put the plaintiff at risk of believing her debt to be paid only to be contacted later for the unpaid amount plus interest.