Harrisburg, Pennsylvania-headquartered PennCredit Corporation is facing a proposed class action claiming it violated the Fair Debt Collection Practices Act (FDCPA). The plaintiff, a New York woman, alleges the defendant sent her a collection notice that unlawfully failed to note whether the total balance due would be accruing interest or fees. From the lawsuit:
“The ‘Total Balance Due’ in this case was for an amount that included original principal and contractual interest. Collection notices that state only the ‘Total Balance Due’ but do not disclose that the balance might increase due to interest [are] ‘misleading’ within the meaning of [the FDCPA]. … Defendant was required to include a disclosure that automatically accrued interest was accruing, or in the alternative, the creditor has made an intentional decision to waive the automatically accruing interest, yet did not make any of those disclosures in violation of [the FDCPA].”
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