Monarch Recovery Faces Lawsuit Over 'Deceptive' Collection Letters

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Monarch Recovery Management, Inc. is on the receiving end of a proposed class action filed by a New York woman who claims the debt collector failed to clearly state the amount of consumers’ alleged debts and thereby hindered them from taking steps to settle their accounts. The plaintiff says she was sent a collection letter that stated her balance “as of 21 APR 2016.” By including a date, the letter implied that the balance could change, but failed to clearly disclose whether interest or fees would be added, and how the charges would be calculated, the suit argues. These failures leave the unsophisticated consumer unable to determine the amount of his or her alleged debt and therefore unable to pay off the balance completely, according to the complaint.