Debt Collector Sued Over 'Misleading' Collection Letters

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A proposed class action has been filed against Progressive Financial Services, Inc. claiming the defendant violated the Fair Debt Collection Practices Act “by using a false, deceptive and misleading representation in its attempt to collect a debt.” According to the complaint, the two plaintiffs were sent collection notices by the debt collector that contained an “Amount Due” and a settlement offer for their alleged debts, but the letters did not specify whether the amount would change due to interest or late fees. Since there was no mention of additional fees or charges, the unsophisticated consumer could interpret the letter to have more than one meaning and be left unsure as to whether any payments made would settle his or her account, the suit argues. The letters were deceptive, the complaint says, because they were “susceptible to an inaccurate reading” and could mislead a reasonable consumer.