Kirschenbaum & Phillips, P.C. Facing Debt Collection Lawsuit in New York

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action out of New York claims debt collector Kirschenbaum & Phillips, P.C. violated federal law by implying in a collection notice that the plaintiff’s balance may increase despite being aware the balance will not vary at all. Describing the defendant’s supposed tactics as “deceptive,” the lawsuit claims the company’s inclusion of zero-balances for “Total Amount of Interest Accrued since Charge-Off”; “Total Amount of Non-Interest Charges or Fees Accrued since Charge-off”; and “Total Amount of Payments and Credits made on the Debt since the Charge-Off” amounts to an empty threat meant to coerce payment out of the plaintiff. Further, the case argues the mere threat of a balance increase overshadows certain language required under the Fair Debt Collection Practices Act.