Cawley & Bergmann Sued Over ‘Questionable’ Settlement Offer

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Cawley & Bergmann, LLP is on the receiving end of a proposed class action lawsuit that alleges violations of the Fair Debt Collection Practices Act (FDCPA). The plaintiff says she received a letter from the debt collector offering her two settlement options – one lump sum or two monthly payments – and demanding the following:

“Your payment must be received in our office within 45 days from the receipt of this letter, in good funds, or this offer will be null and void. Upon clearance of funds this debt will be considered settled in full. We are not obligated to renew this offer.”

The suit argues that the letter’s statements were confusing to the plaintiff because while the defendant demanded full payment within 45 days, it also offered a settlement option that requested one payment within 45 days and the next payment 30 days later. “Consequently,” the complaint alleges, “it is unclear whether only the first installment or both the first and second payments are due within 45-day period after Plaintiff’s receipt of [the letter].”

On top of that, the suit says, the letter also included a required verification disclosure that informed the plaintiff she could dispute the debt or request verification within 30 days of receiving the letter. The complaint claims that the defendant’s settlement deadline overshadowed the validation period, noting that the plaintiff’s opportunity to dispute or verify the debt ends “only a few days before” the settlement offer expires. “The effect of the settlement offer in the initial written debt communication is to discourage or prevent consumers from exercising their validation rights,” the complaint argues, which it then notes is illegal under the FDCPA.