Financial Recovery Services Falsely Implied Balance Increase in Collection Letters, Lawsuit Says

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In a proposed class action out of New York, two consumers allege Financial Recovery Services, Inc. sent them collection letters in which it falsely implied their debt amounts were accruing interest and fees.

The suit says the plaintiffs each received a notice from the defendant stating they owed their respective balances “[a]s of the date of” the letters. According to the case, this language confused the consumers as to whether their account balances were subject to change. From the complaint:

“While it is typical for collection letters to state an ‘amount due’ or a ‘current balance’, it is not typical for a letter to state that the amount owed is as of a specific date as such language would imply the potential of a different balance on a different date.”

The case argues that the language in the notices aimed to create a false sense of urgency and coerce the consumers into making payments.