FDCPA Class Action Filed Against United Recovery Systems

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A proposed class action filed in New Jersey against United Recovery Systems, LP claims the company violated the Fair Debt Collection Practices Act (FDCPA) in collection notices sent to consumers. The plaintiff alleges the defendant sent her a collection notice pertaining to an obligation owed to Department Store National Bank. In that communication, the defendant allegedly included “false and misleading” language purportedly informing the plaintiff that any discharge or forgiveness of debt must be reported to the Internal Revenue Service. What the defendant failed to mention, the case contends, is that there are several exceptions to this requirement, the nondisclosure of which amounts to a violation of the FDCPA.