Fair Collections & Outsourcing Misled Consumer Regarding Time-Barred Debt, Lawsuit Alleges

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Fair Collections & Outsourcing, Inc. is the defendant in a lawsuit that alleges the company offered a consumer a settlement option without disclosing that partial payment would alter the legal status of his time-barred debt.

Filed in Pennsylvania, the proposed class action focuses on a letter sent to the plaintiff in March 2018 concerning supposedly overdue rent in the amount of $6,559.12. The letter allegedly listed two settlement offers of $2,623.65 paid either as a lump sum or in several installments. The suit claims the defendant failed to notify the man that the debt’s statute of limitations would restart should he choose the installment option. From the complaint:

“In fact, had Plaintiff chosen to make several payments over time, and advised Defendant of this in writing, the partial payment would revive the statute of limitations rendering the Plaintiff worse off than if he had rejected the offer.”