Class Action: Cavalry Portfolio Services Omitted ‘Material’ Info from Collection Letter

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Cavalry Portfolio Services, LLC is the defendant in a proposed class action in which a New York resident claims the company violated state and federal law by omitting material information from a debt collection letter.

According to the complaint, the letter “strongly suggests” to the plaintiff that she will be sued if she does not pay the purported obligation, warning that her account may be referred to a “collection law firm” and explaining the possible consequences of a judgment against her. Considering the defendant’s reference to a judgment, the case claims the letter should have also informed the plaintiff that some types of income cannot be collected through litigation, as specified under state law:

The omission of this information, the lawsuit argues, could affect the plaintiff’s decision to pay the alleged obligation. Under the false impression that “any and all types of income” could be collected from her, the woman may decide to submit a payment she might not have otherwise made, the case concludes.