FDCPA Class Action Filed Against Transworld Systems

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A class action filed in New York claims Transworld Systems violated the Fair Debt Collection Practices Act (FDCPA) by failing to note in collection letters that consumers’ “Current Balance Due” could increase because of the accrual of undisclosed interest and fees. The lawsuit argues that “a reasonable consumer could read the notice and be misled into believing that he or she could pay her debt in full by paying the amount listed on the notice” when in fact interest or undisclosed late fees could be building daily. Under the FDCPA, debt collectors are required to inform consumers when their account balances could increase due to interest and fees.