Firstsource Advantage Hit with Multi-Count FDCPA Suit Concerning ‘Misleading’ Collection Letter

New to ClassAction.org? Read our Newswire Disclaimer

Firstsource Advantage, LLC is on the receiving end of a proposed class action lawsuit that alleges the defendant sent a New York consumer a debt collection letter that violated various provisions of federal debt collection law. The notice, according to the suit, concerned a debt supposedly owed on an American Express credit card and set forth the plaintiff’s “account balance.” What the letter neglected to mention, the complaint argues, was whether the stated amount would increase due to interest, late fees, or other fees.

The plaintiff has reason to believe that her account was, in fact, subject to additional charges, but the defendant’s letter allegedly failed to warn her of possible increases and provide her with information – such as the interest rate, date of accrual, amount of late fees, and nature of any other charges – that would allow her to calculate the true balance of her account.

Furthermore, the complaint continues, the letter indicated that the plaintiff owed “$0.00” of “non-interest charges or fees accrued since charge-off.” Simply stating that these charges exist falsely implied that the debt collector was permitted to add extra fees in the future, the suit argues, which constitutes a false threat.