Collection Agencies Hit with FDCPA Class Action

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Virtuoso Sourcing Group, LLC and Pendrick Capital Partners, LLC have been hit with a class action alleging violations of the Fair Debt Collection Practices Act (FDCPA). Filed in Wisconsin, the suit claims the defendants sent separate debt collection letters attempting to collect the same amount from the same account. Both letters, the plaintiff says, contained language that could be confusing to the “unsophisticated consumer.”

Specifically, according to the complaint, the confusing language in both letters “demands a payment within the validation period or shortly thereafter, but does not explain how the validation notice and payment ‘deadline’ fit together.” The unsophisticated consumer, the lawsuit says, would have no idea how to both seek verification of the debt and avoid being reported to three national credit bureaus as mentioned in the letters. Furthermore, the complaint asserts that “the unsophisticated consumer would be confused about how [the defendants] could report the same account to consumer reporting agencies twice.”

Previous FDCPA rulings have established “safe harbor” language to be included in collection letters that addresses conflicts between validation rights and demands for payment.