Alleged Financial Recovery Services Collection Letter Omissions Mentioned in Lawsuit

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A collection notice sent to a New York consumer in November 2017 by Financial Recovery has reared its head in a proposed class action in which the plaintiff claims the company unlawfully failed to provide certain information essential to knowing whether her balance may increase in the future. According to the case, the defendant violated the Fair Debt Collection Practices Act (FDCPA) by presenting the plaintiff’s balance as dynamic when in fact it was not increasing due to additional charges.

“Financial Recovery did not provide any information regarding the rate of interest, the nature of the other charges, how any such charges would be calculated or what portion of the balance due, if any, reflects already accrued interest, late charges or other charges,” the complaint reads.

The complaint argues the form, layout and content of Financial Recovery Services’ notice would lead the least sophisticated consumer to be confused as to whether his or her balance could increase, as well as his or her FDCPA rights.