Lawsuit: Debt Collector Sets 'Sham' Settlement Deadline

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Receivables Performance Management, LLC is on the receiving end of a proposed class action lawsuit filed by a New York woman who claims the debt collector unlawfully included a deadline in collection letters to instill in consumers “a false sense of urgency.” The plaintiff says she received a debt collection letter from the defendant that contained a settlement offer and a statement that read: “The remaining 40% of your outstanding balance will be forgiven if your payment of $1053.59 is received on or before 10-25-16.” According to the lawsuit, Receivables Performance Management is not permitted to set a deadline for the offer because the offer is available at any time. From the complaint:

“Such false statements are materially false statements, as they impart in the unsophisticated consumer, a false belief that he or she must hurry to take advantage of a limited time opportunity, when in reality, there is no such time limit.”