GC Services Limited Partnership Named in Debt Collection Case in NY

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A proposed class action has been filed in New York in which the plaintiff claims GC Services Limited Partnership mailed a collection notice in which it failed to “adequately and honestly” convey the amount of debt owed. The plaintiff claims he received a notice from the defendant that stated:

“As of the date of this letter, you owe $11,051,57. Because of interest, late charges, and other charges that may vary from day to day, the amount due on the day you pay may be greater. Hence, if you pay the amount shown above, an adjustment may be necessary after we receive your check.”

The complaint alleges the defendant violated the Fair Debt Collection Practices Act in its letter because it failed to:

• Inform the plaintiff whether the amount listed is the actual debt owed;
• Inform the plaintiff whether the amount already includes interest;
• Inform the plaintiff whether the amount already includes “other charges”;
• Inform the plaintiff what portion of the amount is principal;
• Inform the plaintiff when “other charges” may be applied, as well as the amount of those other charges; and
• Inform the plaintiff of any details pertaining to interest, such as the rate and amount the debt may increase per week.