Associated Credit Services Sued Over Alleged Failure to Specify Consumer’s Amount of Debt

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Associated Credit Services, Inc. is on the receiving end of a proposed class action lawsuit that claims it violated federal debt collection law by failing to inform a consumer that his account balance was increasing due to interest and fees. The letter allegedly stated he owed $158.90 in “Interest” and $102.93 in “Fees,” but neglected to mention whether the total amount of his debt was continuing to grow. On top of that, the suit argues the defendant never specified the interest rate, the nature of the fees, when the extra charges would be added, or any other information that would allow the plaintiff to calculate his true balance on a given day.