Vital Recovery Services Sent Misleading Letter, Consumer Alleges

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Vital Recovery Services LLC has been named in a Wisconsin consumer’s proposed class action in which she alleges the company violated the Fair Debt Collection Practices Act (FDCPA) by sending a misleading letter.

The case focuses on a September 2017 notice sent to the plaintiff regarding a debt originally owed to WebBank. According to the suit, the letter identified “LendingClub Corporation & LC Trust I” as the current creditor. The plaintiff claims she was confused as to the identity of her creditor in that it was unclear whether LendingClub Corporation and LC Trust I were separate companies.

The letter further stated the following: 

“Because of interest, late charges, and other charges assessed by your creditor that may vary from day to day, the amount due on the day you pay may be greater.” 

The case says this statement was misleading because the debt “had been accelerated and ‘charged off’” and “the creditor had no intention to add late fees to Plaintiff’s account.”