Frontline Asset Strategies, Velocity Investments Sued for ‘False Threat’

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A Pennsylvania consumer claims Frontline Asset Strategies and Velocity Investments, LLC should be held responsible for making the “false threat” that non-payment on his debt may cause the balance to increase, a possible Fair Debt Collection Practices Act (FDCPA) violation.

The plaintiff claims a dunning letter sent to him by the defendants clearly stated that the law limits the statute of limitations during which a consumer can be sued over a debt. The dunning notice, however, allegedly did not inform the plaintiff that partial payment on his balance would restart the clock on the statute of limitations, the suit claims. Further still, the case argues that although the dunning notice said Velocity Investments will choose not to sue the plaintiff, the company could not, in fact, sue the man over his obligation.

“Accordingly, [the defendants’] letter is false, deceptive, and misleading in violation of the FDCPA,” the case reads.