FDCPA Class Action Filed Against United Collection Bureau

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A proposed class action filed in Wisconsin alleges United Collection Bureau, Inc. violated the Fair Debt Collection Practices Act (FDCPA) by including unclear language about a settlement offer. The language in question from the plaintiff’s letter is below:

“On behalf of CITIBANK, N.A., United Collection Bureau, Inc. will accept a settlement in the amount of $669.78 for the above referenced account. This settlement offer will save you the sum of $1,906.28. To take advantage of this offer please ensure the total payment is received in our office by September 30, 2016. We are not obligated to renew this offer and this agreement is contingent upon clearance of funds.”

The plaintiff claims the defendant’s settlement offer, for which he would be on the hook for roughly 26 percent of the total debt, was confusing because if he “broke the payments up into two or more portions, and consequently mailed in a cumulative ‘total payment’ only a few cents higher than $669.78, it is unclear whether the money would be applied to the settlement amount of $669.78 or the total amount of $2,576.06.” Summarily, the lawsuit says, it is unclear how “total payment” over the settlement payment amount would be handled by the defendant.