Lawsuit: Northland Group Attempts to Evade FDCPA-Compliance

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An Arkansas woman has filed suit against Northland Group, Inc. claiming the debt collector sent her an unlawful collection letter. The letter listed “Absolute Resolution Corporation” as the plaintiff’s current creditor, but also referenced Razor Capital at least four times in the body of the letter, according to the complaint. The suit argues that the mention of this other entity leads the consumer to believe that Razor is actually the creditor to whom the debt is due. The defendant’s failure to clearly identify the consumer’s creditor is unlawful under the Fair Debt Collection Practices Act, the complaint says.

The letter also allegedly informs the plaintiff that “if the amount of principal debt forgiven as a result of settlement is equal to or greater than $600.00,” the debt forgiveness may be reported to the IRS. The suit argues that this “unnecessary statement” is misleading because the plaintiff’s settlement would not exceed $600 in any case and would never be reported.