Dynamic Recovery, Cavalry Accused of Debt Collection Misconduct

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Dynamic Recovery Solutions, LLC and Cavalry SPV I, LLC are facing a proposed class action lawsuit that claims the defendants violated various provisions of the Fair Debt Collection Practices Act. The plaintiff says she received a collection letter from the defendants that presented her with various options to settle her debt but noted that her payments must be received by February 18, 2017 in order to take advantage of the offers. The suit argues that the 30-day validation period during which the plaintiff could dispute the debt or request validation ended “at or around the same time” as the settlement deadline, leaving the plaintiff unable to both exercise her FDCPA rights and accept the settlement offer if the debt was verified.

“Thus,” the complaint alleges, “the purpose and effect of providing a settlement offer with a letter containing the validation notice is to discourage the unsophisticated consumer from seeking verification.”

The suit further claims that the four payments listed under one settlement option would add up to one cent less than the total settlement amount provided. The case alleges that the least sophisticated consumer, upon making all the payments, would be unsure as to whether the defendants would consider the debt settled or would seek to collect the entire amount of the debt plus interest.