Client Services Sued Over Allegedly False Representations in Collection Letter

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Client Services, Inc. is facing a New York consumer’s proposed class action that alleges the company sent the woman a collection notice that misrepresented the character of her debt by falsely implying the obligation was subject to interest and fees.

The November 2017 letter, according to the lawsuit, contained an itemized list of charges regarding an outstanding balance owed to Synchrony Bank:

"Balance Due At Charge-off: 4,725.16
Interest: 0.00
Other Charges: 0.00
Payments Made: 0.00
Current Balance: 4,725.16”

The case argues that by providing a “current” balance and indicating a zero balance for “interest” and “other charges,” the letter implied that the amount owed was subject to change. In actuality, the suit says, the company never intended and was not contractually entitled to apply any additional charges to the account.

“Plaintiff was left uncertain as to whether the balance would increase as there was no disclosure that indicated otherwise,” the complaint reads.

The consumer further alleges she was “hampered from prioritizing [her] debts” due to the defendant’s supposedly false implication that her Synchrony account was accruing interest and fees.