Performant Recovery, Inc. is the defendant in a proposed class action filed by a New York consumer who claims a collection letter she received from the company failed to adequately convey her amount of debt. According to the lawsuit, the March 2018 notice stated, in part:
“As of the date of this letter, you owe the balance reflected. Because of interest and other charges that may vary from day to day, the amount due on the day you pay may be greater.”
The case argues such language violates the Fair Debt Collection Practices Act (FDCPA) in that it does not inform the plaintiff whether the debt amount listed is the actual amount due, nor of what other interest or charges may apply. Further, the notice in question reportedly fails to provide “any explanation or information about the claimed accruing interest and charges."
From the complaint:
“In particular, the collection letter failed to specify or explain what the interest rate was or what type of charges could cause the balance to increase, nor did they inform the debtor what he or she would need to pay to resolve the debt at any given moment in the future. The letter precluded a determination of what ‘the amount if [sic] the debt’ was on the date of receipt of the letter.”