Suit Claims Debt Collectors Sent Misleading Letter Regarding Time-Barred Debt

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Dynamic Recovery Solutions, LLC and Cavalry SPV I, LLC have been named in a proposed class action lawsuit filed by a New York consumer who claims the defendants sent him a letter that violated the Fair Debt Collection Practices Act (FDCPA). The letter allegedly offered the man options to settle his debt and stated the following:

“The law limits how long you can be sued on a debt. Because of the age of your debt, Cavalry will not sue you for it and Cavalry will not report it to any credit reporting agency.”

The suit argues that the letter neglected to inform the plaintiff that if he “admits, affirms, acknowledges, or promises to pay the debt,” the statute of limitations will be renewed and the man will forfeit its protections. The complaint claims the least sophisticated consumer “would likely be deceived” by the defendant’s letter and would submit a partial payment without being aware of the ramifications.