Lawsuit: Despite Collection Notice Claims, Total Card, Cavalry SPV Could Not Sue Debtor

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Total Card, Inc. and Cavalry SPV I, LLC are on the receiving end of a proposed class action in which the plaintiff alleges the companies were deceptive in their claim that she would not be sued in connection with a defaulted credit card debt. According to the complaint, Total Card mailed the plaintiff a letter that stated, in part:

The law limits how long you can be sued on a debt. Because of the age of your debt, Cavalry SPV I, LLC will not sue you for it…”

The plaintiff’s debt was time-barred, however, which meant Cavalry, nor any other party, could sue the woman over the obligation, the complaint states. The lawsuit takes issue with language in the notice implying Cavalry has chosen not to sue the plaintiff:

The statement contained in Defendant Total Card’s letter is materially deceptive to the unsophisticated consumer, who would believe that Defendant Cavalry or a subsequent creditor has the option to change its mind should he/she not pay the alleged debt.”

In addition, the case takes umbrage with the defendants’ decision to remain “completely silent” as to the plaintiff’s rights under the Fair Debt Collection Practices Act (FDCPA), namely in failing to disclose that the statute of limitations on the woman’s debt would restart should she make payment.