Lawsuit: Vital Recovery Services, LendingClub Failed to Clearly State Man’s Debt Amount

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Vital Recovery Services, Inc. and LendingClub Corporation are on the receiving end of a proposed class action that claims the defendants sent the plaintiff a collection letter in which they failed to adhere to provisions set by the Fair Debt Collection Practices Act (FDCPA).

According to the lawsuit, the plaintiff received a letter from the debt collectors stating the amount he supposedly owed, along with “interest due” and “misc. fee due.” The case argues that besides these initial amounts, the letter contained no further information that would allow the plaintiff to calculate the amount he supposedly owed, such as the interest rate, the date of accrual, the amount of interest during any measurable period, the amount of late fees, and the date late fees will be added.

In fact, the letter fails to explicitly state that the plaintiff’s account is subject to interest and fees and will increase – a disclosure required under the FDCPA, according to the lawsuit. From the complaint:

“The Letter, because of the aforementioned failures, would render the least sophisticated consumer unable to determine the amount of her debt because the consumer would not know whether interest and fees would continue to accrue, or whether the amount of the debt was static.”