Lawsuit: Cavalry Portfolio Services Sent Non-Compliant Debt Notice

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A proposed class action filed in New York claims defendant Cavalry Portfolio Services broke federal law when it sent the plaintiff a debt collection notice that was confusing and likely to be misconstrued under the “least sophisticated consumer” benchmark. The complaint alleges the defendant, in the collection letter in question, unlawfully failed to disclose whether the plaintiff’s balance may increase due to undisclosed interest and/or fees. Alleging potential Fair Debt Collection Practices Act (FDCPA) violations, the lawsuit says that although the plaintiff’s outstanding balance was increasing due to her contract with the original creditor, the defendant still erred by not disclosing that the amount of debt “could” or “will” grow over time.