FMS Investment Corp. Accused of Sending Non-Compliant Collection Letters

New to ClassAction.org? Read our Newswire Disclaimer

A New York woman has filed suit against FMS Investment Corp. over allegations that it failed to clearly communicate in collection notices the amount of her alleged debt and thereby hindered her ability to pay it. According to the complaint, the plaintiff received a letter from the defendant containing the following statement:

“Your account balance may be periodically increased due to the addition of accrued interest or other charges as provided in the agreement with the original creditor or as otherwise provided by Federal and/or State Law.”

Additionally, the letter stated her accrued interest as $191.17 and listed “fees and costs” as $1,720.74, the complaint notes. What the letter failed to mention, the case continues, was any additional information (such as the interest rate, date of accrual, an explanation of the added fees, and the minimum balance owed) that would allow the plaintiff to calculate the true amount of her alleged debt. These omissions, the suit argues, render the defendant’s letter illegal under the Fair Debt Collection Practices Act, which requires that debt collectors clearly and accurately communicate the amount of consumers’ debts.