Capital Management Services Sued Over ‘Misleading’ Collection Letters

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Capital Management Services, LP is on the receiving end of a proposed class action lawsuit alleging violations of the Fair Debt Collection Practices Act (FDCPA). According to the complaint, the defendant sent a notice to the plaintiff informing him of his account balance and attempting to collect on his alleged debt. The letter further stated, according to the complaint:

“Because of interest, late charges, and other charges that may vary from day to day, the amount due on the day you pay may be greater. Hence, if you pay the amount shown above, an adjustment may be necessary after we receive your check, in which event we will inform you before depositing the check for collection.”

The suit argues this statement is misleading to the unsophisticated consumer because it failed to specify any information that would allow the recipient to accurately calculate how much he or she needed to pay. Specifically, the letter made no mention of the interest rate, the date of accrual, the amount of interest applied “during any measurable period,” or an explanation of the “other charges,” the complaint claims. Because this information was omitted, the suit argues, the letter failed to clearly convey the “amount of debt” and therefore violated the FDCPA.