Consumer Alleges Convergent Outsourcing Failed to Identify Current Creditor

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Convergent Outsourcing, Inc. is the defendant in a proposed class action in which the plaintiff charges that the company broke the law by failing to identify in a collection letter the creditor to which her debt is owed. The lawsuit says the defendant, in the collection notice, stated “Creditor: Verizon” without explicitly identifying the entity as the plaintiff’s creditor.

“’Verizon,’ even if meant as the creditor to whom the debt is owed (which is not stated in the letter), is not specific enough to apprise [the plaintiff] of the identity of the creditor to whom the debt is owed,” the lawsuit argues. “There is no entity named ‘Verizon’ registered with the New York State Department of State, Division of Corporations.”

The complaint goes on to note that 91 disparate entities registered in New York include “Verizon” in their legal name. To this point, the case asserts the plaintiff, i.e. the least sophisticated consumer, would likely be confused as to which of the 91 companies should receive payment for her debt.

Per the case’s second count, the complaint alleges the defendant, through the same notice, attempted to collect on a time-barred debt without informing the plaintiff that payment on the account may open the debt back up to collection activities.