Woman Claims Diversified Central, Pinnacle Credit Services Misrepresented Time-Barred Debt

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Diversified Central, Inc. and Pinnacle Credit Services, LLC have been hit with a proposed class action lawsuit filed by an Alabama consumer who alleges the companies misrepresented her time-barred debt.

The defendants sent a letter to the plaintiff in January 2018 concerning a debt originally incurred on a Verizon account and currently owned by Pinnacle, the suit says. The letter allegedly stated, in part:

“The law limits how long you can be sued on a debt. Because of the age of your debt, Pinnacle Credit Services, LLC will not sue you for it…”

According to the complaint, the notice implied that the debt collector had “chosen not to sue (‘will not sue you’), instead of the true fact that neither Defendant Pinnacle, nor Defendant Diversified, nor any subsequent creditor/collector” was legally entitled to sue for the time-barred obligation. Further, the letter allegedly failed to disclose that any payment made on the account could have restarted the debt’s statute of limitations.

In sum, the case argues that the defendants overshadowed the plaintiff’s rights under the Fair Debt Collection Practices Act (FDCPA) by failing to clearly convey “the true legal status of the debt and potential ramifications resulting from non-payment.”