Debt Collector Northland Group Facing Class Action

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Northland Group, Inc., is facing a proposed class action alleging it violated the Fair Debt Collection Practices Act (FDCPA) in the course of its communications with a supposed debtor. According to the complaint, filed in New York, Northland sent the plaintiff a letter that included the following:

“As of the date of this letter, your loan balance is $39,222.91. Because of interest that may vary from day to day, the loan balance may be greater after the date of this letter.”

The lawsuit takes issue with the defendant’s alleged failure to provide in the notice any information necessary for the least sophisticated consumer to determine the precise amount owed to fully satisfy the debt. Though the letter stated the plaintiff’s balance, the case claims it unlawfully failed to note, among other FDCPA-required information:

-    The applicable interest rate;

-    The date of accrual of interest;

-    The amount of interest “during any measurable period”;

-    An explanation of any fees and interest that may increase the debt amount;

-    What part of the stated balance is attributable to principal;

-    What part of the stated balance is attributable to interest;

-    What part of the stated balance is attributable to late fees; and

-    If the defendant will accept payment of the amount listed to fully satisfy the debt so long as payment is made by a certain date.

All told, the defendant’s conduct allegedly violated the FDCPA because it failed to clearly convey the amount of debt from the perspective of the least sophisticated consumer.