Lawsuit: Atlantic Credit & Finance Falsely Implied Accruing Interest in Collection Letter

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A proposed class action filed in New York federal court claims Atlantic Credit & Finance, Inc. sent a letter in which it misrepresented a consumer’s debt by falsely implying the balance could increase due to interest and fees that the company was not legally able to apply. The case argues the defendant violated the Fair Debt Collection Practices Act (FDCPA) in that it “threatened to take an action it did not intent to take.”

The plaintiff received the letter from Atlantic in May 2018 regarding a debt originally owed to Citibank, the complaint says. The suit takes issue with the following statement allegedly included in the notice:

"The total amount of additional interest, charges and other fees that have accrued since charge-off is $0.00"

According to the case, the defendant was not contractually entitled to apply interest or fees to the plaintiff’s account. The suit argues that the letter, however, falsely implied otherwise.

“The least sophisticated consumer would understand that charges and fees would begin to accrue on the account if she did not pay,” the complaint reads.