Phillips & Cohen Associates, Ltd. is on the receiving end of a proposed class action that accuses it of violating several provisions of the Fair Debt Collection Practices Act (FDCPA). The plaintiff, according to the suit, received a collection letter from the defendant that contained a disclosure regarding his right to dispute the debt or request validation, as required under the FDCPA. The suit argues, however, that the statement was slightly reworded so as to make no distinction between disputing the debt and requesting validation, the result of which being the unsophisticated consumer could be unfairly discouraged from submitting a dispute.
The complaint goes on to argue that the letter unlawfully set forth the plaintiff’s “Balance” without indicating whether the amount was subject to interest or other added fees that would cause it to increase over time. In this case, the suit claims the balance was accruing interest and other charges, but the defendant’s supposed failure to indicate the interest rate, date of accrual, nature of the additional charges, and other required information allegedly left the plaintiff unable to calculate how much he needed to pay to satisfy the obligation.