Class Action Filed Against Nationwide Credit Over Allegedly Misleading Collection Notice

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A New York consumer claims in a proposed class action that Nationwide Credit, Inc. failed to identify his creditor and misrepresented future payment options in a collection letter.

According to the complaint, the notice merely stated, “Re: CHASE BANK USA, N.A.” and did not name “any entity as ‘creditor,’ ‘original creditor,’ ‘current creditor,’ ‘account owner,’ or ‘creditor to whom the debt is owed.’” The lawsuit says the notice simply requested that payment be made to the defendant, leaving the plaintiff unsure as to whom the company represented.

Moreover, the case goes on to take issue with a settlement offer listed in the December 3, 2017 letter. The settlement option was allegedly set to expire on December 18, which the suit says is misleading because it falsely implies that the plaintiff will have no further opportunity to settle his debt. “[I]n fact,” the suit reads, “settlement offers are frequently renewed if the consumer fails to accept the initial offer.” The case argues that the approaching deadline could have pressured the plaintiff into making a payment he could not afford for fear of missing out on a one-time opportunity.