Consumer Claims Capital Management Services Did Not Clearly Convey Amount of Debt

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Capital Management Services, LP is the defendant in a proposed class action in which the plaintiff claims the debt collector unlawfully failed to elaborate on its statement that his debt amount may vary in the future due to “interest, late charges and other charges.” The complaint says the defendant violated federal law in failing to advise the plaintiff on, among other details:

• What portion of the debt is principal;
• Whether the amount will actually increase;
• What “other charges” may apply and when; and
• Whether the debt already includes interest.

The case further argues Capital Management Services erred in purposefully failing to inform the plaintiff specifically of what—and when—any “other charges” may apply to his debt.

“In order to induce payments from consumers that would not otherwise be made if the consumer knew the true amount due,” the complaint states, “[the defendant] does not inform the consumer when such ‘other charges’ will be applied.”