Capital Management Services Facing Class Action Over ‘Current Balance’ Questions

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A proposed class action filed in New York alleges Capital Management Services violated federal law in a collection notice by failing to provide further clarification on the plaintiff’s “Current Amount Due.” The case centers on a September 2017 collection notice from the defendant that stated the plaintiff’s current balance as $1,884.97. Stating a “current amount due,” the case says, falsely intimates that the balance is subject to change from the accrual of interest. 

“The letter can reasonably be read by the least sophisticated consumer to have two or more meanings concerning the actual balance due, one of which must be inaccurate, in violation of the [Fair Debt Collection Practices Act],” the complaint reads.