Lawsuit: Client Services' Letters Mislead Consumers

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Client Services, Inc. is on the receiving end of a proposed class action lawsuit that claims it sends collection letters that are misleading and in violation of the Fair Debt Collection Practices Act (FDCPA). One of the plaintiffs says she received a letter from the defendant offering to settle her alleged debt for $241, but then stating that the “minimum payment due” is $350. According to the complaint, the letter caused the plaintiff to be uncertain as to how much she needed to pay to settle the account in full. The suit further argues that the language in the defendant’s letter “encourages the consumer to make a payment greater than the settlement amount to avoid the chance that payment of the smaller amount would be rejected as insufficient.”

The other plaintiff in the suit alleges that he received a letter from Client Services that stated: “Other Charges: $0.00.” He argues that the defendant’s “nebulous” reference to these unknown fees falsely implies that it may collect future charges, which, the suit says, it is not permitted to collect.