Lawsuit: MRS BPO Uses False Implications to Discourage Debt Settlement

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MRS BPO, LLC is on the receiving end of a proposed class action alleging the company falsely implied to a New York consumer that paying off her alleged debt in full rather than settling for a discounted amount would improve her chances of being approved for future credit services. According to the complaint, the defendant sent the plaintiff a collection letter regarding a debt allegedly owed to Chase Bank U.S.A., N.A. The letter reportedly offered the woman several settlement options but warned her that if she settled her obligation, “Chase may offer you less favorable terms in the future for some Chase products or services or may deny your application.”

The lawsuit argues that this statement implies full payment of the debt would enhance the plaintiff’s likelihood of obtaining future credit extensions or better terms, which the case claims is “false and deceptive.”