Collection Notice Interest Language Trips Up ConServe in Class Action

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From Texas comes a proposed class action wherein the plaintiff claims Continental Service Group, Inc. (ConServe) mailed her a collection notice falsely stating her debt may be accruing interest when, in truth, it was not. Citing supposed Fair Debt Collection Practices Act (FDCPA) missteps, the complaint says the defendant’s January 2017 stated, in part:

Principal: $405.00 

Creditor Assessed Interest/Fees: $0.00

Creditor Assessed Misc Fees: $0.00

Creditor Assessed Coll Costs: $120.97

TOTAL DUE: $525.97 

Date of Last Payment: None provided by Creditor

Rate of Interest: 0.00%

 The defendant’s notice then stated the plaintiff’s debt “may require you to pay interest on the outstanding portion of your balance,” which may lead the stated amount to be greater than that listed in the letter. The lawsuit argues such an assertion is false and deceptive because the letter’s top portion specifically notes the plaintiff’s Rate of Interest is 0.00%. Moreover, the complaint argues the defendant’s implication that the plaintiff’s balance may increase from interest unlawfully oversteps her legal dispute rights under the FDCPA.

“The language threatening the assessment of interest on the debt serves to overshadow the 30-day validation notice as it caused [the plaintiff] to believe she must pay immediately to avoid potential accruing interest in the future rather than to take the statutorily afforded 30 days to dispute the debt,” the lawsuit states.