FDCPA Class Action Accuses Collector of Making Deceptive Settlement Offer

A class-action lawsuit has been filed in Florida against a company for allegedly violating the Fair Debt Collection Practices Act by offering a settlement to an individual in a collection letter without being specific enough even though the letter disclosed “if your account is settled for less than the full original balance it will cause future collection efforts to cease.”

A copy of the complaint in the case of Johnson v. I.C. System can be accessed by clicking here.

The plaintiff is seeking to include any individuals in Florida who received a collection letter from the defendant that contained “deceptively worded settlement offers,” according to the complaint.

In this case, the plaintiff incurred a debt owed to a telecom company that was placed with the defendant for collection. The defendant sent a letter to the plaintiff, informing her that she owed $2,119.60. The letter also stated, “If you would like to settle your account for $1,059.80 call I.C. System at 833-250-2055. If your account is settled for less than the full original balance it will cause future collection efforts to cease.”

The plaintiff alleges the statement violates Section 1692e(10) of the FDCPA because it is a false and misleading representation. What the plaintiff alleges is false and misleading is that the letter “is unclear what form of settlement” is being offered. The letter, claims the plaintiff, does not clarify what will happen with the rest of the balance if the settlement offer is paid and “whether the rest of the balance would be collected by another collection company in the future.”

The settlement offered in the letter “contains no significant benefit and is unclear to what the benefits of the settlement would actually be,” according to the complaint.

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