FDCPA Class Action Filed Against Alltran Financial, LP

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Alltran Financial, LP, formerly known as United Recovery Systems, L.P., allegedly violated the Fair Debt Collection Practices Act (FDCPA) by failing to expressly state in a collection letter whether the plaintiff’s debt balance was accruing interest. According to the proposed class action, a collection letter sent by the defendant failed to include safe harbor language required by the FDCPA, which left the plaintiff, i.e. the least sophisticated consumer, unsure as to whether the “amount due” was continually accruing interest. With this type of uncertainty, the suit notes, a debtor could be misled into believing he or she is paying a debt in full when the amount is actually continuing to increase due to interest accrual.

“The state of an ‘Amount Due’, without notice that the amount is already increasing due to automatically accruing contractual or statutory interest, would mislead the least sophisticated consumer into believe [sic] that payment of the amount state will clear his or her account,” the complaint reads.