Debt Collection Lawsuit Filed Against Mercantile Adjustment Bureau

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Mercantile Adjustment Bureau, LLC is on the receiving end of a proposed class action lawsuit filed by a New York consumer who claims the debt collector failed to clearly communicate her amount of debt as required under the Fair Debt Collection Practices Act (FDCPA). According to the complaint, the plaintiff received a collection letter from the defendant containing the following statement:

“The account balance may periodically increase due to the addition of accrued interest as provided in your agreement with the original creditor or as otherwise provided by law.”

The suit argues that this statement is misleading because it fails to inform the plaintiff whether the listed balance already includes interest, when interest will be applied, the applicable interest rate, or any other information required to calculate the true amount of her alleged debt on a given day.