Lawsuit Against D&A Services, One Other Takes Issue with Collection Letter’s ‘Confusing’ Language

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D&A Services, LLC and Crown Asset Management, LLC are facing a proposed class action accusing the debt collectors of failing to clearly communicate with a Wisconsin consumer concerning her purported debt. According to the complaint, D&A sent the plaintiff a collection letter regarding a debt Crown Asset Management had purchased from the woman’s original creditor, Synchrony Bank. The notice, according to the case, referenced a “current balance” of $1,209.69 but also contained a statement demanding the “total amount due on [the plaintiff’s] account.”

The suit takes issue with the potential disparity between the “current balance” and “total amount due,” noting that there is a difference between amounts “owed” and “due” on credit card accounts. The complaint claims the “total amount due” may actually be less than the “current balance,” and that the unsophisticated consumer would be unsure after reading the letter as to the minimum amount he or she needed to pay.

Alternatively, the case attests, the “total amount due” could imply that the account was accruing interest and would be higher than the “current balance.” Adding to the confusion is another letter the plaintiff allegedly received from her original creditor informing her that her account had been sold to Crown Asset. According to the lawsuit, “it is not uncommon for debt buyers like Crown to begin to add interest after purchasing a debt.” If that is the case, the complaint continues, the defendants erred by failing to inform the plaintiff that interest was accruing on her account.

“[The collection letter] fails to state the amount of the debt in a non-confusing manner,” the lawsuit concludes. “The unsophisticated consumer would be confused as to whether the ‘Total Amount Due’ was actually equal to the ‘Current Balance,’ or some other lesser or greater amount.”