National Credit Services Inc. is staring down a proposed class action lawsuit filed by a Wisconsin consumer who claims the collection agency falsely implied that the balance of her accelerated Federal Perkins Loan may increase.
The case focuses on an August 2018 letter that allegedly stated the woman’s entire account was “due and payable” while simultaneously suggesting that late charges may be applied to the balance. The letter misled the plaintiff in that once a debt is accelerated, the case says, no late charges can be added to the balance. According to the lawsuit, this is because once an account becomes “due and payable,” there is no installment plan that can become due.
Further, the suit alleges that the letter failed to clearly communicate the woman’s debt amount. The notice supposedly listed the charges on the account as follows: