Class Action Against Firstsource Advantage Alleges Debt Collection Law Violations

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Firstsource Advantage, LLC is the defendant in a proposed class action filed by a New York consumer who claims the company mailed him a collection notice in which it failed to identify the amount of debt owed while implying paying the obligation in full could enhance his creditworthiness. 

The lawsuit states the plaintiff received a collection notice from Firstsource in November 2017 that stated he owed $5,650.35. The communication also reportedly noted that should the man pay the alleged balance in full, “there may be an opportunity for you to regain card membership with American Express.”

According to the case, the agreement between American Express and the plaintiff stipulated that interest and late fees would accrue should the man’s account not be timely paid. Firstsource’s collection notice unlawfully failed to disclose that the stated balance may increase due to interest and late fees, the suit charges.

Moreover, the defendant’s implication that the plaintiff may enhance his likelihood of receiving approval for AmEx credit products by paying the account in full is misleading and deceptive in that it’s simply untrue, the lawsuit says. 

“Upon information and belief, [the plaintiff’s] payment in full of the amount claimed would not have enhanced his likelihood of obtaining AmEx credit products or services in the future, nor would it have improved his overall creditworthiness,” the complaint reads.