Debt Collector Sued Over ‘Extremely Ambiguous’ Collection Letter

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Relin, Goldstein & Crane, LLP are facing a proposed class action lawsuit filed by a New York woman who claims the defendant sent her a collection letter that failed to comply with the Fair Debt Collection Practices Act (FDCPA). The letter allegedly contained the following statements:

“The Amount Due above reflects the total balance due as of the date of this letter. The itemization reflects the post charge-off activity we received from American Express Bank, FSB and as such is subject to timing and system limitations.”

The plaintiff’s account was not, in fact, subject to the possible additional charges listed under “post charge-off activity,” according to the suit. The language in the letter, the suit claims, falsely implies that these “non-existent fees” may still be added to the plaintiff’s account if she does not avoid them by paying off the balance quickly.

The complaint further argues that the phrase “timing and system limitations” is “extremely ambiguous” and fails to clearly inform the least sophisticated consumer whether the balance in the letter will increase in the future, an explanation required of the defendant under the FDCPA.