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Agency Sued Over Use of ‘Current’ To Describe Unpaid Balance in Collection Letter

A collection agency is facing a class-action lawsuit alleging it violated the Fair Debt Collection Practices Act because using the word “current” in a collection letter misled the plaintiff into believing the balance on the unpaid debt could continue increasing, even though no additional interest or fees were accruing on the debt.

A copy of the complaint in the case of Vickiy Ziely v. Capital Management Services can be accessed by clicking here.

The plaintiff received a collection letter on or around March 7, 2018, regarding an unpaid credit card debt. The letter included a section that listed the following information:

  • Original Creditor: Discover Bank
  • Current Creditor: Discover Bank
  • Account #: XXXXXXXXXX5041
  • Description: Discover Card
  • Amount Due at Charge-Off: $12077.09
  • Interest Accrued Since Charge-Off: $0.00
  • Non-Interest Charges or Fees Accrued Since Charge-Off: $0.00
  • Payments Made Since Charge-Off: $0.00
  • Current Amount Due: $12077.09

By using the word “current” in the letter, a least sophisticated consumer would believe that the “Current Amount Due” “was merely the balance as of the date of that respective letter, and the implication that the amount due would increase daily because of interest, late charges, and other charges and fees if not promptly paid,” according to the complaint, which was filed in District Court for the Eastern District of New York. The complaint alleges the defendant failed to accurately state the amount of the debt and used sales, deceptive, or misleading means to attempt to collect on it.

The suit is seeking to include any other individuals who received similar letters from the defendant related to an unpaid credit card debt.

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