EGS Financial Care Failed to ‘Clearly Convey Amount of Debt,’ Lawsuit Claims

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A New York consumer alleges in a proposed class action that EGS Financial Care, Inc. ran afoul of federal debt collection law in that the company suggested in a notice that the man’s balance, in part, “may be periodically increased due to the addition of accrued interest or other charges.” The lawsuit asserts EGS violated the Fair Debt Collection Practices Act (FDCPA) in that it failed to convey the amount of the plaintiff’s debt clearly and from the perspective of the least sophisticated consumer, an allegation backed by the plaintiff’s charge that the defendant failed to:

• State the minimum amount owed at the time of the notice;
• State whether the debt listed already includes “accrued interest”;
• State whether the amount already included “other charges”;
• State what portion of the plaintiff’s debt is principal;
• Expand on what “other charges” may be applied to the account, and what they may be; and
• Provide details concerning accrued interest and the applicable interest rate.

The case alleges the above-mentioned alleged omissions were intentional and meant to induce payment from consumers.