Enhanced Recovery Company Hit with Debt Collection Class Action

New to ClassAction.org? Read our Newswire Disclaimer

Enhanced Recovery Company is the defendant in a proposed class action that claims the company violated the federal Fair Debt Collection Practices Act (FDCPA). Filed by a New York consumer, the case alleges the defendant sent the plaintiff a collection notice that “is open to one of multiple interpretations and would likely be misunderstood by an unsophisticated consumer” because it unlawfully failed to note whether the stated balance may increase due to undisclosed interest or fees. The absence of this safe harbor language, the suit says, is a violation of the FDCPA, as it could mislead the debtor into thinking payment of the amount stated in the collection notice would clear his or her account when it was actually increasing due to interest.