NY Consumer Files FDCPA Class Action Against Client Services, Inc.

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Client Services, Inc. is the defendant in a proposed class action that claims the company ran afoul of the Fair Debt Collection Practices Act (FDCPA). According to the lawsuit, the defendant sent the plaintiff a collection notice that unlawfully failed to note whether the stated debt amount was accruing interest or fees. Under the FDCPA, this behavior is considered deceptive because it could lead the unsophisticated consumer to mistakenly believe he or she could pay off the full debt amount by paying the amount listed in the notice. The lawsuit points out it could also open the door for further alleged unsavory behavior on the part of the defendant:

“The debt collector could still seek the interest and fees that had accumulated after the notice was sent, but before the balance was paid, or sell the consumer’s debt to a third party, who itself could seek the post charge-off interest and fees from the consumer,” the lawsuit says.