Alltran Financial Accused of Failing to Comply with FDCPA

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A proposed class action has been filed against Alltran Financial, LP (which the suit notes was formerly known as United Recovery Systems, L.P.) over allegations that it violated the Fair Debt Collection Practices Act (FDCPA). According to the complaint, the plaintiff received a collection letter from the defendant containing the following statements:

“As of the date of this letter you owe the amount stated above. Because your account continues to accrue interest and may accrue late and other charges on all owed balances pursuant to your agreement with Citibank, N.A., the amount due on the date you pay may be greater. If you pay the amount above an adjustment may be necessary after we receive your check. If so, we will contact you.”

The suit argues that the letter is missing information that would allow the recipient to accurately calculate the amount of debt he allegedly owed, including, among other items, the interest rate, the nature of the “other charges,” and when extra fees will be applied. As a result, the suit claims the defendant failed to clearly communicate the plaintiff’s “amount of debt” and therefore violated federal law.