Firstsource Advantage Hit with FDCPA Class Action

New to ClassAction.org? Read our Newswire Disclaimer

Firstsource Advantage, LLC is facing allegations that it violated the Fair Debt Collection Practices Act (FDCPA) by sending misleading collection letters. The plaintiff claims he received a notice from the defendant that stated the following:

“The Amount Due above reflects the total balance due as of the date of this letter. The itemization reflects the post charge-off activity we received from American Express and as such is subject to timing and system limitations.”

The suit argues that this statement is misleading because it falsely implies that the plaintiff’s balance could increase and that he would “benefit financially” by paying the alleged debt as soon as possible. Furthermore, the complaint argues that the phrase “timing and system limitations” is “extremely ambiguous” and is “subject to a myriad of interpretations” that would likely leave the least sophisticated consumer unsure as to its true meaning.

The lawsuit then notes that the plaintiff received a second collection letter from Firstsource Advantage that purported to be from his original creditor – American Express. The suit argues that this conduct violated the FDCPA because the defendant failed to communicate to the plaintiff that the letter was from a debt collector attempting to collect a debt.