Class-Action Accuses Collector of Violating FDCPA Through Discount Language in Letter

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A class-action complaint has been filed against a debt collector for allegedly violating the Fair Debt Collection Practices Act because of the language it used in a letter offering the plaintiff opportunities to repay the debt by making less than a payment in full.

A copy of the complaint, filed in District Court for the District of Massachusetts can be accessed by clicking here.

The plaintiff received a collection letter this past March from the defendant. The letter indicated the plaintiff had been “pre-approved for a discount program” to repay the debt and offered three options:

  • a 10% discount if payment was made in one installment
  • a 5% discount if the balance was paid in six installments
  • Monthly payments as low as $50 per month

It is the third option that the plaintiff focused on in his complaint because it is allegedly open to more than one interpretation. The third option does not disclose whether the full amount would need to be repaid if that option were selected, or if the total balance was still being discounted if that option were chosen, according to the complaint. That option is also “deceptive” because the letter indicates that the offers are “designed to save you money,” according to the complaint, and if the balance is not being discounted on the third option, then there is no discount and the plaintiff would not be saving any money.

The complaint accuses the defendant of violation Sections 1692e(2), 1692e(10), and 1692f of the FDCPA and seeks to include anyone else who received a letter with similar offers.

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