LTD Financial Services Limited Accused of Abusive Debt Collection Practices

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A proposed class action out of New York federal court alleges LTD Financial Services Limited Partnership failed to clearly convey a consumer’s debt amount and violated her debt dispute rights.

The case takes issue with a July 2018 collection notice sent to the plaintiff that stated, in part:

"Total amount of the debt due as of Charge-off
$8,341.50
Total amount of Interest Accrued Since Charge-off:
$0.00
Total amount of Non-Interest Charges or Fees
Accrued Since Charge-off: $0.00"

According to the suit, the letter misrepresented the debt by suggesting interest or fees could accrue on the obligation when, in fact, the balance would not increase, nor was the defendant contractually entitled to apply charges to the account. The complaint argues that the debt collector falsely implied “that a payment sooner rather than later will be more economical for the consumer,” which constitutes as deceptive representations under the Fair Debt Collection Practices Act (FDCPA).

“Defendant could have avoided any confusion by not listing charges, fees, and other non-interest charges or fees in its Collection Letter at all by providing ‘N/A,’” the suit reads.

In addition, the plaintiff called the debt collector in August 2018 to dispute the debt, the case says. During the call, a supervisor employed by the defendant asked the plaintiff about her reasons for disputing the debt and, after attempting to get the woman to settle her account, ultimately refused to accept the woman’s dispute, the complaint says.