Lawsuit Claims NCSPlus Misrepresented How Long Debt Could Be Reported

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NCSPlus is the defendant in a proposed class action that claims it sent a collection letter to a consumer that misrepresented how long a debt would remain on the man’s credit report.

According to the complaint, the plaintiff received a letter from the defendant in October 2017 regarding an account that fell into default “well before” that date. The case takes issue with the following statement included in the letter:

“Under federal law, your name and the amount you owe may be reported due and unpaid to one or more of the National Credit Reporting Bureaus…Any information reported about you may remain in your Credit Bureau file for up to seven years.”

The case argues the debt can only remain on the plaintiff’s credit report for seven years from the date of default, not from the date on which the letter was sent as implied in the defendant’s statement. The suit alleges the defendant violated the Fair Debt Collection Practices Act (FDCPA) by harassing the plaintiff with “false threats of negative reporting” and misleading the man regarding the legal status of the debt.

“Defendant’s letter is a deceptive tactic to coerce a payment from Plaintiff on the debt by threating [sic] him with harm to his credit report for significantly longer than allowable by law,” the complaint reads.