CAC Financial Corp Sued Over 'Deceptive' Collection Letters

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A proposed class action lawsuit has been filed against CAC Financial Corp. that claims the company sent “deceptive” collection letters to consumers in violation of the Fair Debt Collection Practices Act (FDCPA). According to the lawsuit, the plaintiff received a letter that stated an “amount,” but neglected to include any information about interest or possible changes to the stated amount. The FDCPA requires that debt collectors specify whether the balance of a consumer’s debt will increase due to interest or fees, the complaint argues. Because of CAC’s alleged failure to clearly communicate the true amount of the plaintiff’s balance, he claims he was unable to determine whether any payments he made would actually settle the account.