Northland Group Named in Two More FDCPA Class Actions

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Northland Group Inc. is the defendant in two proposed class actions filed on May 2 that allege the outfit violated the Fair Debt Collection Practices Act (FDCPA) through the course of its conduct with consumers. Each lawsuit, filed in New York, claims Northland Group sent the respective plaintiffs collection notices that were “confusing” and “likely to be misconstrued” from the perspective of the least sophisticated consumer.

In one lawsuit, the plaintiff alleges Northland Group sent him a collection letter in which it unlawfully failed to disclose whether the stated amount owed may increase due to the accrual of interest and/or fees. The plaintiff argues that even though his contract with the original creditor did stipulate his debt would increase due to interest, that fact still needs to be disclosed in an initial communication by the debt collector, Northland Group.

“In fact, however, since contractual interest is automatically accruing daily, and since there will be undisclosed fees that will accrue, a consumer who pays the ‘account balance’ stated on the notice will not know whether the debt has been paid in full,” the complaint posits.

Similarly, the plaintiff in the other lawsuit also alleges Northland Group violated the FDCPA, only this time the individual’s claims concern a disclosure made in a collection notice that may not be entirely accurate. According to the case, Northland Group purported in a collection letter that the discharge of the plaintiff’s debt is required to be reported to the IRS. This statement, the complaint says, could mislead the least sophisticated consumer into believing all debt forgiveness must be reported to the IRS, when in fact the defendant allegedly left out of its notice an essential fact that “the reporting of forgiveness of a debt happens only if the principal forgiven exceeds $600,” as well as other stipulations.

Both complaints can be read below.