Central Credit Services, Synchrony Bank Knocked with FDCPA Suit

New to ClassAction.org? Read our Newswire Disclaimer

Central Credit Services, LLC and Synchrony Bank are the defendants in a proposed class action filed in Wisconsin over alleged violations of federal debt collection laws. The case lays out a somewhat complicated situation in which the defendants sent the plaintiff three separate, allegedly deceptive communications:

• In Letter 1, Synchrony informed the plaintiff that she needed to submit payment by September 15, 2016 to “cure default” and to “continue with the contract as through [she was] not late” with payments;
• However, a previous letter the plaintiff received on September 8, 2016—Letter 2—stated if the woman failed to send at least the minimum payment for her obligation by the next due date, her account would be placed with a collection agency;
•  On or around September 29, 2016, the case continues, the plaintiff received her first letter from defendant Central Credit Services, Letter 3, which said the woman’s debt had been “accelerated” and that the full balance was now due.

There’s more. Despite the statements made in Letter 1 and despite those made in Letter 3, the plaintiff received a fourth letter—Letter 4—around September 27 demanding a minimum payment be made. The lawsuit argues defendant Synchrony Bank’s representations in Letter 1 were false and misleading, as the unsophisticated consumer, i.e. the plaintiff, would be unable to determine whether the debt had been accelerated or how much was actually due. Stoking the plaintiff’s argument, the case notes Letter 3 sought to collect the entire amount the woman owed, while Letter 4 asked for a much lesser payment.