Dynamic Recovery Solutions Misrepresented California Consumers’ Time-Barred Debts, Lawsuit Says

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A proposed class action filed in California claims Dynamic Recovery Solutions, LLC sent letters that falsely represented the legal status of consumers’ time-barred debts, as well as the repercussions of making or not making payments.

At the core of the lawsuit is a December 2017 collection notice sent to the plaintiff concerning a debt that was originally incurred to Bank of America and currently owned by Cach, LLC. According to the suit, the letter failed to disclose that the statute of limitations on the obligation had expired, meaning no entity could sue the plaintiff for the money. In addition, the notice supposedly advised the consumer that making a partial payment on the debt could restart its statute of limitations, which the case says is not true under California law.

In sum, the complaint argues that these allegedly deceptive letters coerced payment from California residents while leaving them unsure of their legal rights.