New York Consumer Claims Constar Financial Services Failed to Clearly Convey Debt Balance in Letter

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A New York consumer alleges that Constar Financial Services, LLC failed to clearly convey his debt balance, as required under the Fair Debt Collection Practices Act (FDCPA), by sending him a collection notice that did not disclose that his balance may increase due to interest and fees.

The defendant sent the plaintiff a letter in September 2017 regarding a debt purportedly owed to Harley Davidson Credit Corp., the proposed class action says. According to the suit, interest and fees were accruing on any unpaid amounts pursuant to the terms and conditions of the plaintiff’s credit card account. The lawsuit claims that the letter, however, unlawfully failed to indicate that the current balance may increase.

The suit further argues that the letter’s failure to disclose any potential increase in balance could lead the consumer to believe that either interest and fees will no longer be applied, or that they will continue to be applied as usual. Since the letter could potentially be interpreted in multiple ways, the suit alleges that the defendant engaged in deceptive debt collection practices.