Forster & Garbus, LLP and the firm’s namesake attorneys are facing a proposed class action lawsuit that takes issue with allegedly misleading language in a collection letter sent to a New York consumer.
Forster & Garbus, LLP and the firm’s namesake attorneys are facing a proposed class action lawsuit that takes issue with allegedly misleading language in a collection letter sent to a New York consumer. The notice, according to the complaint, concerned a credit card debt the plaintiff purportedly owed to Discover Bank and stated that her “Balance Due as of May 4, 2017” amounted to $13,237.60. This language, the suit argues, implies the possibility the balance will increase at a later date but doesn’t directly explain how much the plaintiff is expected to pay. The case claims the defendants violated the Fair Debt Collection Practices Act (FDCPA) in each of the following scenarios:
if the debt is not subject to interest, late charges, or other fees, the defendants falsely implied so by stating a balance “due as of” a particular date; or
if the debt is subject to additional fees, the defendants failed to clearly disclose that the balance will increase while neglecting to provide information needed to calculate the debt amount on any given day.
The suit then explains that although F&G had obtained a judgment against the plaintiff, the defendants may not be authorized to collect post-judgment interest. On the other hand, the complaint poses, post-judgment interest may very well be accruing automatically on the plaintiff’s debt under state law. The case rounds out in alleging the defendants’ letter, absent a firm stance on either side of the aisle, therefore left the plaintiff in the dark as to how much she needed to pay in direct violation of the FDCPA.