‘Current Balance’ Questions Come Up in Class Action Against Transworld Systems

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Transworld Systems Inc. is the defendant in a lawsuit seeking class action status in which the plaintiff claims he received a collection notice that violated the Fair Debt Collection Practices Act (FDCPA). According to the lawsuit, Transworld’s notice stated a current balance without any further clarification, a move the complaint states can reasonably be interpreted by the plaintiff to mean the amount was subject to change.

“[The plaintiff’s] account was not subject to the accrual of interest,” the lawsuit reads, “but by stating a ‘Current Balance,’ [the defendant] falsely suggested that immediate payment of the balance would benefit [the plaintiff] by implying that the balance would be subject to change, and could be subject to additional interest." 

The case charges a debt collection letter that can be read as having two or more meanings concerning the true balance owed, with one of said interpretations being incorrect, is a violation of the FDCPA.