Debt Collectors Sued over 'Illegal' Charges and Litigation Threats

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A New Jersey woman has filed a proposed class action lawsuit against First National Collection Bureau Inc. and LVNV Funding LLC, alleging that the debt collectors illegally charged interest on her account and threatened to collect on a supposedly time-barred debt. According to the suit, the defendants are not licensed consumer lenders in the state of New Jersey and are therefore prohibited from charging interest on consumer accounts. The plaintiff claims she received a collection letter from the defendants specifying a balance that included interest and other illegal charges. She further alleges that the letter contained a statement advising her that any action she took to pay off the debt could allow the defendants to sue her. The suit argues that the letter’s language is misleading and infringes on the plaintiff’s right to receive “accurate and trustworthy information” regarding her alleged debt.