Lawsuit: Cavalry Portfolio Services Collection Letter ‘Overshadowed’ Debt Dispute Rights

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A proposed class action has been filed against Cavalry Portfolio Services, LLC claiming the debt collector “misrepresented and contradicted” the plaintiff’s right to dispute an alleged debt. According to the lawsuit, the defendant’s June 2017 collection letter stated:

“We may report information about your account to the credit reporting agencies.”

The case takes issue with the letter’s implied urgency and its silence regarding the plaintiff’s right to dispute the debt or request validation within 30 days of receiving the letter, noting that the defendant failed to assure the man that the threat of reporting his account does not override his validation rights:

“The unsophisticated consumer cannot be expected to know that the validation notice included within the Defendant’s initial communication takes precedence over the demand for payment as was expressed in the Defendant's letter,” the complaint reads.

The lawsuit argues the defendant never intended to report the debt to credit reporting agencies and the statement at issue in the letter was a “scare tactic” meant to induce the plaintiff into paying off his debt instead of disputing it.