Encore Receivable Management Accused of Attempting to Collect Debt Amounts ‘Not Yet Due’

New to ClassAction.org? Read our Newswire Disclaimer

Two plaintiffs have filed a proposed class action against Encore Receivable Management Inc. that claims the company attempted to collect debt amounts that were not yet due and misled the consumers regarding their debt dispute rights.

The suit focuses on letters sent to the plaintiffs concerning debts incurred on Synchrony Bank credit card accounts. According to the complaint, the “Amount Now Due” that the defendant sought to collect corresponded with the “Total Minimum Payment Due” indicated in previous bank statements.

“There is a difference between the ‘Amount Past Due’ and the ‘Total Minimum Payment Due,’” the suit explains. “The ‘Total Minimum Payment Due’ is the sum of the ‘amount past due’ and the minimum payment, which is not itself due until ‘5 P.M. EASTERN ON THE DUE DATE.’”

The case argues that the defendant overstepped federal debt collection law by demanding the full minimum payment before the due dates set by the plaintiffs’ creditor.

Further, the suit takes issue with the letters’ debt dispute instructions that allegedly stated:

“If payment has already been made, please notify this office at 866-247-1087 or by writing to Encore at the address listed below.”

The case argues that by instructing the plaintiffs to call the collection agency, the defendant encouraged them to forego their verification rights by communicating their disputes orally rather than in writing.