Consumer Alleges Southwest Credit Systems Tried to Impose Unauthorized Collection Fee

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A New York consumer alleges in a proposed class action suit that defendant Southwest Credit Systems, L.P. mailed her a collection notice in which it attempted to impose an additional $52.73 “collection fee” not authorized by any agreement between the woman and her original creditor. Citing possible violations of the Fair Debt Collection Practices Act (FDCPA), the lawsuit takes additional issue with the defendant’s ostensibly “limited time” offer to resolve the plaintiff’s account so long as payment arrangements were made within seven days of receipt of the notice.

“[The defendant] failed to make clear whether the offer would expire seven days from receipt of the letter or seven days from the date the letter was sent,” the lawsuit says. “This is an equivocal statement intended to confuse the least sophisticated consumer because there is no way for [the defendant] to verify whether [the plaintiff] called within seven days.”