Lawsuit: Debt Collector's Letters Fail FDCPA Compliance

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A New York woman has filed suit against Forster & Garbus LLP, claiming the debt collector violated the Fair Debt Collection Practices Act (FDCPA) by failing to clearly identify the amount of her alleged debt. She says she received a collection letter in November 2016 that stated a “balance due” of $14,006.24. In March 2017, the plaintiff inquired about her balance on two separate occasions and was told that it had increased to $14,312.47 and $14,326.02, respectively. The suit argues that the collection letter can be considered misleading under the FDCPA because it failed to indicate that the plaintiff’s balance would be accruing interest. According to the complaint, “[a] reasonable consumer could read the notice and be misled into believing that he or she could pay her debt in full by paying the amount listed on the notice.” By neglecting to disclose the required information, Forster & Garbus robbed the plaintiff of her ability to make a calculated decision in response to the letter, the suit says.