• Home
  • News
  • Sunrise Credit Services Dinged with FDCPA Class Action

Sunrise Credit Services Dinged with FDCPA Class Action

A New Jersey man has filed a proposed class action claiming defendant Sunrise Credit Services, Inc. violated the Fair Debt Collection Practices Act (FDCPA) with its debt collection practices. According to the plaintiff, the defendant sent collection letters to consumers that included the following language:

“As a result of this settlement, if the amount cancelled on this debt equals or exceeds $600, the IRS may require the creditor to report the amount cancelled on a form 1099-C.”

The lawsuit argues that the defendant unlawfully failed to tell proposed class members that there are “other exceptions beyond the $600 threshold amount that affect whether cancellation of debt is reportable.” Semantically, the complaint continues, the defendant’s use of the word “may” in the language in question is a key sticking point, since it may lead consumers to be confused as to whether the debt cancellation needs to be reported.

Before commenting, please review our comment policy.

Stop H.R. 985

A reckless new bill represents an unprecedented threat to consumer rights, essentially gutting class action and mass tort litigation. Congress has tried to ram it through without us noticing. Read more about the implications of this bill, and contact your members of Congress to protect your rights.

Blog Categories

Sign Up For Our Newsletter

New cases and investigations, settlement deadlines, and news - straight to your inbox.

About ClassAction.org

ClassAction.org is a group of online professionals (designers, programmers and writers) with years of experience in the legal industry. We work closely with class action and mass tort attorneys across the country and help with investigations into corporate wrongdoing.