Lawsuit Claims Debt Collector Misleads Consumers in Collection Letters

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Mullooly, Jeffrey, Rooney & Flynn LLP is facing a proposed class action lawsuit filed by a New York woman who claims the debt collector sent her a letter that failed to comply with the Fair Debt Collection Practices Act. According to the complaint, the letter stated the following:

“As of this date your balance is $2,435.48. Because of the interest or fees that may vary from day to day, the amount due on the day you pay may be greater. Hence if you pay the amount shown above, an adjustment may be necessary after we receive your check, in which event we will inform you before depositing the check for collection.”

The lawsuit argues that the letter unlawfully neglects to clearly communicate the amount of the consumer’s alleged debt by failing to state the interest rate, the timing of the added fees, and what extra charges would apply, among other information needed to calculate the true balance. As a result, the suit considers the letter "misleading" and alleges it violates federal law.