Lawsuit: GC Services Miscommunicated Tax Implications of Accepting Debt Settlement Offer

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action filed in Connecticut federal court claims GC Services Limited Partnership misled a consumer regarding the tax implications of settling her purported debt. According to the complaint, the defendant listed the plaintiff’s settlement amount as $897.23 and then informed her that if she accepted the offer, her creditor “may report a discharge of indebtedness if required by applicable tax law.” The suit argues that the settlement amount in the letter would “never have IRS implications” and that the defendant’s supposed warnings were only meant to discourage the plaintiff from settling the debt.