Alpha Recovery, JH Portfolio Debt Equities Facing FDCPA Suit in New York

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Alpha Recovery Corp and JH Portfolio Debt Equities, LLC are facing a proposed class action that claims the entities sent a New York consumer a collection notice that violated the Fair Debt Collection Practices Act. The letter stated the plaintiff’s “current balance claimed due” yet allegedly neglected to indicate whether the amount would increase due to interest or added fees - even though the man’s account was, in fact, subject to additional charges per the terms and conditions set by his original creditor. The suit argues that the defendants failed in their obligation to clearly state the plaintiff’s “amount of debt” by leaving out key information, including the interest rate, date of accrual, amount of late fees, and the nature of any other charges that could be added to his balance under his creditor’s contract.

The complaint further alleges that the letter's statement of “Non-Interest Charges or Fees Accrued Since Charge-Off” as “$0.00” falsely indicates that the debt collectors could demand these additional charges in the future.

“The Letter falsely implies that Defendants have the right to add a fee to the debt,” the suit attests, explaining that this threat is misleading because the debt collectors “have no legal basis” to impose additional fees on the plaintiff.