MRS BPO Facing New York Consumer’s FDCPA Lawsuit

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A proposed class action has been filed in New York against MRS BPO, LLC in which the plaintiff claims the Cherry Hill, New Jersey debt collector mailed her a notice in which it falsely implied that accepting a settlement offer would improve her credit. The nine-page complaint says the defendant included the below language in its notice to the plaintiff:

“If we settle this debt with you for less than the full outstanding balance, Chase may offer you less favorable terms in the future for some Chase products or services, or may deny your application.”

The lawsuit charges MRS BPO violated the Fair Debt Collection Practices Act (FDCPA) because the above language can “be reasonably read to have two or more different meanings, one of which is inaccurate.” The above language, the complaint argues, implies to the plaintiff that settling her debt for the full debt amount, rather than the reduced settlement amount, could enhance the likelihood of approval for credit products from Chase.

“On information and belief, [the plaintiff’s] payment in full of the amount claimed would not have enhanced her likelihood of obtaining Chase credit products or services in the future, nor would it have improved her overall creditworthiness,” the complaint asserts.