Kohn Law Firm Hit with Class Action Over Alleged Debt Collection Violations

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Kohn Law Firm S.C. is on the receiving end of a proposed class action that alleges the collection agency sent two consumers letters that failed to clearly convey their respective debt amounts. More specifically, the plaintiffs claim the notices not only failed to state that their debts were accruing interest, but also did not provide an itemized list of charges, effectively misleading them as to the amounts they owe.

One plaintiff further claims the defendant attempted to collect a greater amount of money than the agency was legally entitled to. The suit explains that between the date a judgment was entered against the plaintiff and the date on a collection letter received three months later, the man’s alleged debt balance increased by $338.66 without an explanation. The balance was seemingly attributed to an unlawful post-judgment interest rate of 23.6 percent, which was “in gross excess of” the 5.5 percent interest rate permitted by law, the case says.

In addition, the complaint alleges the defendant falsely implied that legal action would continue to be taken against the plaintiff regardless of whether he accepted a settlement option. The Fair Debt Collection Practices Act (FDCPA) “specifically prohibits ‘the threat to take any action that cannot legally be taken or that is not intended to be taken,’” the complaint says.