Lawsuit: Collection Letters Sent by Northstar Location Services Violated FDCPA

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Northstar Location Services, LLC is facing a proposed class action that accuses the debt collector of issuing “false and misleading” collection letters that violated the Fair Debt Collection Practices Act (FDCPA).

According to the suit, the defendant sent the plaintiff a collection letter in April 2018 that read:

“We have been authorized by our client, TD Auto Finance LLC, to offer you an opportunity to settle your account. If you wish to take advantage of a settlement offer, you must select one of the following options: 1 payment of $5,361.73, which is 35% of the current balance due by 04/26/18. 3 payments of $2,042.56, which is 40% of the current balance due by 04/26/18, 05/26/18, and 06/26/18.”

About a month later, the case continues, the defendant sent the plaintiff an additional collection letter that presented identical settlement offers with later deadlines, despite the first letter’s implication that the offers would not be available again if the plaintiff did not accept them by the provided deadlines. The lawsuit argues that the statement included in each letter “reads like an infomercial” and gives the false impression of a one-time offer to generate a sense of urgency for timely payment.

“Saying that one of the two options ‘must’ be selected in order to get the settlement suggests that the offer is uniquely superior to any other offer and will be the only chance to settle, even though it is identical to previous offers,” the case points out.

The lawsuit calls for the compensation of the plaintiff due to damages she allegedly suffered through the defendant’s “false” and “deceptive” debt collection efforts.