Nationwide Credit Sued Over Allegedly Misleading Language in Collection Letter

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Nationwide Credit, Inc. has been hit with a proposed class action that takes issue with allegedly misleading language in a debt collection letter. According to the lawsuit, the letter, which the defendant sent to a New York consumer regarding a debt allegedly owed to American Express, contained the following statements:

“The Account Balance above reflects the total balance due as of the date of this letter. The itemization reflects post charge-off activity we received from American Express and as such is subject to timing and system limitations.”

The case argues that the least sophisticated consumer would be unsure as to what the “timing and system limitations” are, as the defendant supposedly provided no further explanation. Consequently, the suit continues, the consumer would be “left to guess” his or her current balance, which may or may not be affected by the ambiguous “timing and system limitations.” According to the lawsuit, the defendant violated federal debt collection law by failing to clearly communicate the plaintiff’s debt amount.