National Business Factors, Inc. of Nevada is on the receiving end of a proposed class action that claims the defendant violated various provisions of the Fair Debt Collection Practices Act (FDCPA). According to the complaint, the plaintiff received a debt collection letter from the defendant warning him that failing to “fulfill the terms of [his] credit obligation” could result in negative credit reporting. The case argues that referring to the plaintiff’s debt as a “credit obligation” is misleading and unlawful because it falsely represents the “character, amount and/or legal status” of the debt to intimidate the plaintiff into making payments.
The case further alleges the defendant demanded more than the permissible amount in interest and late fees and falsely advised him that he “couldn’t dispute the account and that he had to pay the entire balance.”
The plaintiff then claims the defendant inaccurately reported the debt to credit agencies by failing to inform them that the information was disputed.