Class Action Against LTD Financial Services Takes Issue with ‘Misleading’ Settlement Offers

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LTD Financial Services Limited Partnership is on the receiving end of a proposed class action lawsuit filed by two named plaintiffs who claim collection letters they received from the defendant were misleading. The letters each supposedly contained a settlement offer with two payment plan options and deadlines by which payments must be received. Citing potential violations of the Fair Debt Collection Practices Act (FDCPA), the lawsuit argues that the letters could pressure the plaintiffs into quickly accepting the respective offers to avoid having to pay the full debt amounts in the future.

“While a settlement offer in and of itself is not improper,” the complaint poses, “such offer runs afoul of the FDCPA if it impresses upon the least sophisticated consumer that if she does not pay by the settlement deadline, she will have no further opportunity to settle her debt for less than the full amount.”

The case claims the defendant failed to include language in the collection letters that would indicate to the plaintiffs that the offers may or may not be renewed in the future.