United Collection Bureau, Inc. is facing a proposed class action wherein the plaintiff claims the company mailed him a collection notice in which it falsely implied that paying a debt in full, as opposed to paying a reduced settlement amount, may improve his chances of receiving “future credit” products from Chase Bank.
The collection notice in question was reportedly sent in November 2017. While presenting the plaintiff with an offer to settle the consumer’s debt for a little more than half the full amount, the notice then allegedly stated:
If we settle this debt with you for less that [sic] the full outstanding balance, Chase may offer you less favorable terms in the future for some Chase products or services or may deny your application.”
According to the complaint, the above language is false and deceptive under the Fair Debt Collection Practices Act (FDCPA) in that the plaintiff cannot be sure whether it’s better or worse to settle the debt.
“This language is deceptive and overshadowing as it does not truly afford the consumer of [his or her] proper rights and ability to dispute the debt, as it falsely implies that payment in-full (rather than settlement) of the claimed debt would have enhanced [his or her] likelihood of receiving future credit products or enhanced [his or her] overall creditworthiness,” the suit reads.