Convergent Outsourcing, Galaxy Portfolios Hit with FDCPA Lawsuit

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A New Jersey man has filed a proposed class action against Convergent Outsourcing, Inc. and Galaxy Portfolios, LLC alleging the companies broke the law by failing to itemize the amount of debt listed in a collection letter sent to the plaintiff. Filed over a debt to Bank of America that was purchased by Galaxy Portfolios and then referred to Convergent for collection, the lawsuit claims the debt collection letter failed to list amounts for interest, fees, and other charges. This may be considered deceptive to the least sophisticated consumer, who may not be aware that the amount of debt owed includes interest. Further, the case argues the defendants do not have proper licenses under New Jersey law to receive interest, and were allegedly not authorized to do so by the original creditor.