Lawsuit Against Northstar, Navient Claims Collection Letter’s Numbers Don’t Add Up

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Northstar Location Services, LLC and Navient Solutions, LLC are facing a proposed class action alleging the debt collectors misrepresented a consumer’s debt amount and charged him unlawful fees. According to the complaint, the man received a collection letter from the defendants that stated the "Total Charge-Off Balance" as $169,788.17; "Total Interest Since Charge-Off" as $28,042.14; "Total Amount of Payments Since Charge-Off" as $.00; and "Total Fees Accrued since Charge Off" as $300.35. The case claims these numbers added together should equal a total balance of $198,130.66, but the letter allegedly lists the “Balance” as $197,962.03. The lawsuit argues that one or more of the amounts the defendants stated must be incorrect, causing the letter to be misleading.

The complaint further claims Northstar added fees to the plaintiff’s balance “that aren’t based in law or contract” in alleged violation of federal and state debt collection laws.

The lawsuit, originally filed in state court, has since been removed to the District Court for the Eastern District of New York.