Northstar Location Services Pinged with FDCPA Class Action

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A recent class action out of New York claims defendant Northstar Location Services, LLC unlawfully misled the plaintiff by saying that his collection letter’s settlement offer “may have tax consequences.” The lawsuit argues that this language is deceptive—and violates the Fair Debt Collection Practices Act (FDCPA)—because it fails to accurately state any applicable IRS code. The suit claims the defendant included the language as a threat to the debtor.

“[The defendant’s] violations of the FDCPA created the risk of real harm that the plaintiff would perceive [the defendant’s] statement as a threat to report potentially forgiven debt even though the pertinent law may be wholly inapplicable to [the plaintiff’s] debt,” the case argues.