Consumer Files Suit Against 'Abusive' Debt Collectors

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Phillips & Cohen Associates, Ltd. and PCA Acquisitions V, LLC, which does business as Portfolio Asset Group, are the defendants in a proposed class action lawsuit that claims they failed to disclose whether interest and fees were accruing on a consumer’s alleged debt. The plaintiff says he received a collection letter that stated his “current balance owing,” but that he was unable to determine the true amount of his debt, which may or may not have included interest and fees. The lawsuit cites the Fair Debt Collection Practices Act (FDCPA) and argues that debt collectors are required to clearly state the amount of consumers’ debts. According to the complaint, the “deceptive communications” in the letter were made in violation of the FDCPA because they “frustrate the consumer’s ability to intelligently choose his or her response.”