Cavalry Portfolio, Cavalry SPV I Accused of Misstating Consumer’s Amount of Debt

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Cavalry Portfolio Services, LLC and Cavalry SPV I, LLC are on the receiving end of a proposed class action lawsuit that alleges the debt collector misstated the amount of a consumer’s purported debt. According to the complaint, the plaintiff received an account statement for her Citibank credit card indicating that she owed a “new balance” of $2,980.32 with a “minimum payment due” of $959.31. About a month later, she allegedly received another account statement listing a “new balance” and “minimum payment due” that both equaled $3,023.27.

The complaint then describes collection letters the plaintiff received in the following months from three different debt collectors demanding an amount of $3,023.27.

In August 2017, however, the plaintiff says she received a collection letter from the defendants stating an “outstanding balance” of $2,980.32. The suit surmises that the defendants based their balance off the plaintiff’s earlier account statement and neglected to include the last month of interest accrued before her account was charged off. According to the complaint, the defendants either misstated the amount of the plaintiff’s debt or failed to include an explanation of the lowered balance, leaving her unsure as to how much she truly owed and at risk of paying the lower amount just to be contacted later for the remaining balance.

“Consumers who believe they have paid off an account in full are frequently contacted, sometimes years later, by the same or different debt collectors seeking the unpaid amount plus interest, which is often substantial,” the complaint argues.