Alltran Financial Sued Over Alleged Non-Disclosures in Collection Letter

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A proposed class action lawsuit has been filed against Alltran Financial, LP by a New York woman who claims the defendant sent her a misleading collection letter. The letter allegedly contained the following statement:

“Because your account continues to accrue interest and may accrue late and other charges on all owed balances pursuant to your agreement with your creditor, the Total Balance on the date you pay may be greater.”

The suit argues that although the defendant notified the plaintiff that her balance would increase, it failed to provide her enough information to calculate how much she truly owed, such as the interest rate, date of accrual, and nature of the “late and other charges.” As a result, the complaint alleges, the letter is “reasonably susceptible to an inaccurate reading by the least sophisticated consumer” and is therefore considered “deceptive” under the Fair Debt Collection Practices Act.