Debt Collection Class Action Filed Against Firstsource Advantage
Last Updated on May 8, 2018
Henig v. Firstsource Advantage, LLC
Filed: November 4, 2016 ◆§ 1:16-cv-06144
Buffalo, New York-headquartered Firstsource Advantage is facing a class action lawsuit claiming the company sent misleading collection letters.
Buffalo, New York-headquartered Firstsource Advantage is facing a class action lawsuit claiming the company sent misleading collection letters. The suit asserts the plaintiff received a collection notice on September 21, 2015 that listed a balance of $12,253.50. Unbeknownst to the plaintiff, interest on the debt was accruing daily, as he found out when he received a second letter on December 29 of that year reflecting a balance of $13,008.48.
This undisclosed accrual of interest, the lawsuit argues, could leave the consumer unaware as to whether or not his or her debt has been paid in full. “The said collection letters at issue were increasing daily due to interest,” the lawsuit states, “but the December 29, 2015 letter specifically failed to disclose that the balance would continue to increase due to interest and fees.” Alternatively, the complaint continues, it is also a violation of the Fair Debt Collection Practices Act (FDCPA) to fail to disclose that a debt amount is not increasing due to the interest and fees being waived.
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