I.C. System Iced with Debt Collection Class Action

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Minnesota debt collection group I.C. System, Inc. is the defendant in a proposed class action alleging it sent the plaintiff a collection notice that unlawfully contained “inherently confusing and ambiguous” language. Citing possible Fair Debt Collection Practices Act (FDCPA) violations, the lawsuit claims I.C. System sent a collection notice over a $379.28 balance supposedly owed to DirecTV that included an offer to settle the debt for a reduced payment of $246.53. Coupled with this was a statement informing the plaintiff the offer “is valid for the balance shown on your account(s) as of the date of this letter,” the complaint says.

The case alleges the plaintiff, i.e. the unsophisticated consumer, would be confused by such language because the notice then stated he could “make arrangements to accept” the settlement offer by calling the defendant’s phone number. 

“Such broad, open-ended language is inherently confusing to the consumer and an unfair collection practice,” the case argues, adding the unsophisticated consumer would have no way of knowing whether payment of the purported settlement amount would actually satisfy the debt.

“[The defendant’s] language leaves open the possibility that the consumer will make a payment at the offered 65% settlement amount (i.e. 35% off), only to be informed that the offer has since expired and [the defendant] will continue to collect on the remaining balance,” the lawsuit reads.