Consumer Claims GC Services Limited Partnership Failed to Clearly State Debt Amount

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GC Services Limited Partnership is on the receiving end of a proposed class action alleging the company sent a collection notice to a consumer that failed to clearly convey the amount of debt by vaguely referring to the possibility of future interest and other charges.

The defendant allegedly sent the New Jersey consumer a letter in December 2017 regarding a credit card debt that stated, in part: 

“As of the date of this letter, you owe $28,573.41. Because of interest, late charges, and other charges that may vary from day to day, the amount owed on the day you pay may be greater. Hence, if you pay the amount shown above, an adjustment may be necessary after we receive your payment, in which event we will inform you.”

The lawsuit argues that this statement violated the Fair Debt Collection Practices Act by failing to clearly convey the amount of debt. By referencing possible “interest, late charges, and other charges” without including any explanation of the threatened additional fees, the defendant implied that the plaintiff’s balance would change yet withheld the information she needed to calculate how much she truly owed on a given day, the suit explains. Moreover, the case argues that omitting more specific information regarding a future balance increase was a deceptive and misleading collection tactic meant to “induce” payment from the plaintiff.