Debt Collection Action Filed Against Resurgent Capital Services, Cach

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A New York consumer claims in a proposed class action case that Resurgent Capital Services L.P. and Cach, LLC are responsible for a collection notice he received that may contain violations of the Fair Debt Collection Practices Act (FDCPA).

According to the complaint, Cach, LLC purchases defaulted consumer debts, normally at a significantly discounted value, and has been the plaintiff in “more than 3,000 collection lawsuits” pending in New York state within the last year. The plaintiff claims the collection notice in question could likely be misconstrued by the least sophisticated consumer since it failed to note whether the current balance owed may increase due to interest and fees. In such a situation, the complaint claims, a reasonable consumer may be misled into believing his or her debt could be fully satisfied by paying the stated amount owed, when in reality the amount can change.