Lawsuit Claims Capital Management Services Failed to Disclose Accruing Interest

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Capital Management Services, L.P. is facing a proposed class action that takes issue with an allegedly unlawful debt collection letter sent by the defendant. The plaintiff claims that the disputed letter, sent in July 2017, failed to correctly disclose the debt balance by not explaining that interest was accruing on the stated amount. The lawsuit argues that the “unsophisticated consumer” could interpret the “Amount of Debt” listed as the total amount owed and fail to realize that interest would continue to accrue on the unpaid balance. A consumer who paid off the “Amount of Debt” as stated in the letter would be unsure as to whether the debt was satisfied, the suit points out, “as the Defendant could still attempt to collect on any interest and fees that accumulated after the letter was sent but before the balance was paid.”