Consumer Sues Financial Recovery Services Over ‘Nebulous’ Collection Letter

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Financial Recovery Services, Inc. is facing claims that it violated the Fair Debt Collection Practices Act (FDCPA) by failing to clearly indicate whether extra charges would be added to consumers’ accounts. In a proposed class action lawsuit, a Wisconsin woman alleges that she received a collection letter from the defendant that included the following: “Cost Balance: $0.00.” The letter supposedly provides no explanation for this. The complaint argues that the plaintiff was therefore unable to determine whether “some unknown charges” would be added to her debt in the future and whether the true balance of her alleged debt would change.