Debt Collection Agency Rushmore Service Center, LLC Hit with Lawsuit

New to ClassAction.org? Read our Newswire Disclaimer

A class action lawsuit filed in New York claims Rushmore Service Center, LLC violated the Fair Debt Collection Practices Act (FDCPA). The plaintiff claims he received a collection letter that failed to include FDCPA-mandated safe harbor language, an omission that could lead the unsophisticated consumer to be unsure of whether the debt was continuing to accrue interest and fees. Under the FDCPA, the suit says, this omission amounts to a failure by the debt collector to correctly state in full the amount of debt owed. Although the collection letter sent to the plaintiff by the defendant demanded full payment of the debt amount listed, “the letter did not state on which date the ‘amount’ was calculated,” nor did it clearly outline if “contractual or statutory prejudgment interest and/or legal fees” would continue to mount on top of the unpaid balance. Therefore, the lawsuit alleges, a reasonable consumer may misinterpret the letter and believe he or she could pay the debt in full when, in fact, the amount listed may not be the final amount owed.