GC Services Faces FDCPA Lawsuit Over Unclear Collection Letters

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GC Services Limited Partnership is on the receiving end of a proposed class action lawsuit that claims it failed to clearly communicate the amount of consumers’ alleged debts. The plaintiff says she received a letter from the debt collector informing her that she owed $12,911.38 and that “because of interest, late charges, and other charges that may vary from day to day, the amount due on the day [she pays] may be greater.” The suit argues that this statement fails to indicate the interest rate, the timing of the late fees, and the nature of the “other charges” mentioned. As a result, the plaintiff is unable to calculate the true amount of her alleged debt, though the Fair Debt Collection Practices Act mandates that debt collectors communicate this information, the complaint says. According to the suit:

“In order to induce payments from consumers that would not otherwise be made if the consumer knew the true amount due, Defendant does not inform the consumer whether the amount listed will increase.”