Gold Key Credit, Inc. is on the receiving end of a proposed class action in which a New York consumer claims he received a collection letter from the company containing threats that his supposed debt would be reported to TransUnion and Equifax.
The lawsuit centers on the following language in the defendant’s February 2017 notice:
“Please be advised that Gold Key Credit, Inc. reports to TransUnion and Equifax and your account may be reported if it is not paid. We recommend that you contact us.”
Said language was included in the notice as a tactic to scare the plaintiff into paying the debt, the lawsuit alleges. Moreover, the above language, the case says, amounts to a threat to take action that cannot be taken by the defendant, as credit reporting is not contingent upon final payment. Lastly, the lawsuit claims the inclusion of such language in a collection notice overshadows the plaintiff’s right under the Fair Debt Collection Practices Act (FDCPA) to request validation of a debt.