Resurgent Capital Services and LVNV Funding LLC are defendants in a proposed class action that alleges the defendants attempted to collect unlawful interest on the plaintiff’s debt. The plaintiff incurred a debt to Credit One Bank prior to December 13, 2012, the case explains. On December 13, 2012, the suit continues, Credit One charged off the debt and closed the plaintiff’s account to any future charges, including interest. In January 2013, the plaintiff’s debt was allegedly sold to the defendants.
The lawsuit alleges that in a September 2017 collection letter, the defendants added $224.11 in interest to the plaintiff’s debt balance. The case argues that the defendants had no legal right to add interest after Credit One charged off the account and that the defendants’ “deceptive collection practices” violated the Fair Debt Collection Practices Act.