Monarch Recovery Management, Inc. is the defendant in a proposed class action filed by a New York consumer who alleges the collection agency falsely implied that his charged-off debt was subject to interest and fees.
The suit focuses on a letter sent to the man in January 2018 concerning an obligation originally incurred on a Synchrony Bank account. According to the case, the letter stated, “As of the date of this letter, you owe $12074.33.” By indicating that the balance was due “as of” a certain date, the letter, the suit says, misguided the plaintiff into thinking the balance could increase at a later time. In reality, the case points out, the debt was charged-off and was no longer subject to interest and fees.
“The Letters [sic] would have accurately stated the amount of the Debt by stating ‘The amount due is $12074.33’ or ‘The amount of the debt is $12074.33,’” the case argues.