Lawsuit: ClearSpring, Diverse Funding Omitted Required Info from Debt Collection Letter

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ClearSpring Loan Services, Inc. and Diverse Funding Associates, LLC have been named as defendants in a proposed class action lawsuit alleging violations of the Fair Debt Collection Practices Act (FDCPA). The plaintiff in the case, a West Virginia resident, claims he received a collection letter from ClearSpring – which the suit notes later changed its name to Sortis Financial, Inc. – on behalf of Diverse Funding regarding a time-barred debt. The letter allegedly informed the plaintiff that the age of his supposed debt prevented Diverse Funding from commencing litigation against him. What the letter failed to mention, however, was whether the defendants were still permitted to report the debt to credit reporting agencies, the suit says. According to the complaint, this supposed non-disclosure violated West Virginia state law and the federal FDCPA in that it misrepresented the character of the plaintiff’s alleged debt.