FDCPA Suit Claims Statewide Credit Services Misled Consumer Regarding Debt Amount

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Statewide Credit Services, Corp. is facing a proposed class action filed in New York that claims the debt collector failed to clearly communicate a woman’s debt amount. The defendant, which does business as Schwartz, Schwartz & Associates, allegedly sent the plaintiff a collection letter containing the following statement:

If this creditor’s policy is to accrue interest, the balance owing the day you pay may be greater.”

The lawsuit attests that interest was not accruing on the plaintiff’s account at the time the letter was sent. The defendant’s statement would be considered deceptive under The Fair Debt Collection Practices Act, the lawsuit says, as it could mislead the plaintiff into thinking her debt balance was increasing.