United Collection Bureau Accused of Misleading Woman Regarding Debt Amount

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United Collection Bureau, Inc. is on the receiving end of a proposed class action lawsuit that claims the defendant failed to clearly communicate a consumer’s debt amount in a collection letter. The June 2017 notice supposedly included the following statements:

“As of the date of this letter, you owe the above stated New Balance amount. Because of interest and/or other charges that may vary from day to day, the amount due on the day you pay may be greater.”

Despite implying that the plaintiff’s account balance was increasing, the defendant failed to provide “any explanation or information” concerning the purported interest and “other charges” that may be added to the account, the suit says. Given the letter’s silence regarding the interest rate, date of accrual, and nature of the supposed additional charges, the plaintiff was left with no method by which to calculate how much she truly owed, the case alleges.

Further, the lawsuit claims the defendant’s implications that the plaintiff's balance would increase were false, arguing that despite the language in the letter, the woman’s account was not subject to interest and would never increase.

“The least sophisticated consumer would be misled by this language because it suggests that the Defendant could potentially impose additional charges, even though that would never actually occur,” the complaint reads, adding that the defendant’s alleged deception constitutes a violation of the Fair Debt Collection Practices Act.