FDCPA Lawsuit Seeks Relief from Northstar's 'Deceptive' Practices

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Northstar Location Services, LLC is on the receiving end of a proposed class action lawsuit that alleges violations of the Fair Debt Collection Practices Act (FDCPA). The plaintiff claims she received a letter from Northstar that noted her “balance,” but failed to specify whether the balance would increase due to interest or late fees. The letter also included a statement that listed her “total fees accrued since charge-off” as $0.00, according to the complaint. The suit argues that this statement is misleading because it falsely implies that Northstar has the right to add additional fees to the plaintiff’s account in the future.

The FDCPA requires that debt collectors clearly disclose consumers’ account balances, but Northstar’s letter failed to “clearly, explicitly and unambiguously” communicate the true amount of the plaintiff’s alleged debt, the complaint claims.