FDCPA Class Action Filed Against Sentry Credit

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Sentry Credit, Inc. is the defendant in a proposed class action that claims the company violated the Fair Debt Collection Practices Act (FDCPA) in the course of its communications with the plaintiff and proposed class members. The Pennsylvania consumer who filed the 19-page complaint alleges Sentry Credit sent him a collection notice offering repayment options that unlawfully failed to communicate that his debt may not need to be reported to the IRS due to numerous exceptions “beyond the $600 threshold amount that affect whether cancellation of debt is reportable.”

“A collection notice is deceptive when it reasonably can be read to have two or more different meanings, one of which is inaccurate,” the lawsuit reads. “The language contained in the February 15, 2016 letter could reasonably be understood by the least sophisticated consumer to mean that IRS regulations require that the creditor, in all circumstances, must report forgives of debt on a Form 1099-C.”