Capital Resource Management Accused of FDCPA Violations

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Capital Resource Management, Inc. is facing a proposed class action lawsuit alleging violations of the Fair Debt Collection Practices Act (FDCPA). According to the suit, the defendant sent the plaintiff two collection letters, the second of which indicated to him that his account was “currently under review” by the defendant’s legal counsel. The defendant’s counsel then allegedly communicated to the plaintiff that his creditor intended to file a lawsuit against him “to obtain the amount due, and any accruing interest, costs and attorneys’ fees, as per the alleged contract.” The suit argues that the mention of “accruing interest” indicates that the defendant failed to clearly communicate the amount of the plaintiff’s alleged debt in its first two letters, which it says made no mention of possible interest being added to his account.

On top of that, the complaint argues that the defendant improperly sent communications directly to the plaintiff after learning he was represented by counsel, an alleged violation of the FDCPA.