FDCPA Class Action Aimed at Account Discovery Systems, DNF Associates

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Account Discovery Systems, LLC and DNF Associates, LLC are staring down a proposed class action lawsuit out of California court alleging violations of the Fair Debt Collection Practices Act (FDCPA) and the Rosenthal Fair Debt Collection Practices Act (Rosenthal FDCPA).

The lawsuit claims the plaintiff received a collection notice from the defendants that noted the debt amount owed may include post-charge-off interest. According to the complaint, the defendants failed to explicitly state whether the balance included “post charge interest,” a violation of the FDPCA and Rosenthal FDCPA.

“The validation notice states that the debt owed is $1,997.73, but then states that the debt ‘may include post charge off interest,’ without clearly stating whether or not the debt actually includes any post charge off interest,” the lawsuit argues. “By way of example, the least sophisticated debtor would not know whether the $1,997.73 is all he owes, or whether there is an additional amount due for the ‘post charge off interest’ that was not included in the validation notice.”