TSG Collections, LLC is on the receiving end of a proposed class action lawsuit filed by a New York woman who claims the debt collector failed to disclose required information in its collection letters and unlawfully threatened her with legal action. The woman says she received a letter from the defendant that failed to clearly identify her alleged creditor, in violation of the Fair Debt Collection Practices Act. TSG Collections then sent her an additional letter that supposedly threatened legal action “in order to scare [the plaintiff] into paying the alleged debt.” The suit argues that the defendant is not legally permitted to follow through with its “empty threat” and never intended to do so.
The second letter also indicated that a “cost of collection” may be added to the plaintiff’s account balance, but did not clearly define when or how this charge would be calculated, according to the complaint. The suit argues that this statement could lead the unsophisticated consumer to believe his or her account balance may increase due to interest or fees, and that the defendant is required to disclose this information under the FDCPA.
The plaintiff claims she was “left in the dark” after reading the unclear language in TSG’s letters. As a result, she was unable to respond accordingly and unable to determine the true and legal consequences of her action or inaction, the suit says.