Collection Letter Lands Financial Recovery Services in Hot Water

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A New York consumer alleges in a proposed class action lawsuit that Financial Recovery Services, Inc. mailed her a collection notice that can reasonably read to have two or more different meanings. The lawsuit, which leans on alleged violations of the Fair Debt Collection Practices Act (FDCPA), claims the defendant’s statement of a “Balance due as of October 4, 2017” falsely suggests the plaintiff’s obligation could change as a result of additional interest. The case argues, however, that the plaintiff’s balance was not subject to the accrual of interest, something Financial Recovery Services allegedly failed to disclose in its notice.