Financial Credit Network Facing Collection Notice Class Action in California

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A California consumer alleges in a proposed class action that Financial Credit Network, Inc. mailed her a collection notice that was out of step with the Fair Debt Collection Practices Act (FDCPA). The plaintiff claims Financial Credit Network falsely stated in the notice that interest may be accruing on her Southern California Gas debt, when in fact no interest was applicable. More specifically, the complaint takes issue with the letter listing the “*Interest/Late Payment Charge” as $0.00, with the asterisk denoting that, “when applicable, this balance will continue to accrue interest per annum compounding daily.” The letter itself, the lawsuit says, does not actually state whether the plaintiff’s account was accruing interest.

“More importantly the defendant’s letter is false because this alleged debt has been previously charged off and, therefore, in its current status will never accrue interest,” the complaint notes.