Gatestone & Co. Hit with FDCPA Lawsuit

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Gatestone & Co. International, Inc. is on the receiving end of a proposed class action lawsuit that claims it violated the Fair Debt Collection Practices Act by failing to clearly state the amount of an alleged debt. The plaintiff says he received a letter from the defendant that contained an “Amount Owing,” but neglected to indicate whether the amount would increase due to interest or fees. The lawsuit argues that the least sophisticated consumer could interpret the letter in multiple ways. If the balance were static, the suit claims, the debt could be satisfied by paying the exact amount stated in the letter at any time. “The least sophisticated consumer could also reasonably believe that the ‘Amount Owing’ was accurate only on the date of the letter because of the continued accumulation of interest and/or late fees,” the complaint argues. In this case, the individual would be unable to determine how much money would be required to satisfy the debt because the letter neglected to specify an interest rate or date of accrual, according to the suit.