Lawsuit: Debt Collectors’ Letters Unlawfully Coerce Payment

New to ClassAction.org? Read our Newswire Disclaimer

Fenton & McGarvey Law Firm, P.S.C. and Midland Credit Management, Inc. (MCM) are on the receiving end of a proposed class action lawsuit that claims they sent misleading collection letters to consumers. The plaintiff says she received a letter from Fenton & McGarvey on behalf of MCM that contained the following statement:

“Because of interest, late charges, and other charges that may vary from day to day, the amount due on the day you pay may be greater.”

This statement is allegedly misleading because, according to the complaint, it indicates that the defendants have the authority to add additional fees to the amount in the letter when, in reality, the balance will not change. As a result, the least sophisticated consumer may be deceived into thinking he or she has “a financial incentive to pay the debt sooner, or risk owing a higher amount,” the suit claims.