Fair Collections and Outsourcing Accused of Deceptive Debt Collection Practices

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Fair Collections and Outsourcing, Inc. (FCO) is the defendant in a proposed class action lawsuit alleging deceptive debt collection practices.

The plaintiff, a Deerfield Beach, Florida resident, claims to have received an unlawful collection notice from the defendant in October 2017 regarding a time-barred debt. The letter supposedly stated, in part:

“The law may prevent the creditor from taking legal action on this account.”

The case argues that the letter misled the plaintiff by failing to disclose that since the statute of limitations on the debt had expired, neither the creditor nor any other party could have sued the woman over the obligation. 

“The statement contained in Defendant FCO’s letter is materially deceptive to the unsophisticated consumer, who would be confused as to whether [the current creditor] or a subsequent creditor has the option to change its mind and sue should the consumer not pay the alleged debt,” the complaint reads.

Moreover, the suit claims the letter failed to disclose that any payment made on the time-barred debt “would restart the statute of limitations for bringing a lawsuit.”