Debt Collectors Hit with Suit Alleging FDCPA Violations

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Pinnacle Credit Services, LLC and First National Collection Bureau, Inc. are on the receiving end of a proposed class action that claims they violated various provisions of the Fair Debt Collection Practices Act (FDCPA). The plaintiff says she received a collection letter from the defendants that stated her balance and a settlement offer. She argues that the defendants attempted to charge an interest rate of over 20%, which is unlawfully higher than the state’s allowed maximum of 16%. Furthermore, the letter allegedly fails to mention that interest is accruing and that charges may apply if the settlement offer is not accepted. According to the suit, the plaintiff is unlawfully denied all the information she needs to determine the true amount of her alleged debt and what actions she should take to settle her account.