Monterey Financial Services Accused of Violating FDCPA

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A proposed class action lawsuit has been filed against Monterey Financial Services, LLC, which the suit notes also does business as Monterey Collections and Monterey Loan Servicing, over claims that the company violated the Fair Debt Collection Practices Act (FDCPA). The plaintiffs in the case, a married couple, allege that they received a collection notice from the defendant that stated they owed $332.50 in “undisclosed” fees. The suit argues that these collection fees were not authorized by the plaintiffs’ contract with their creditor and were therefore illegal.

The suit takes further issue with an ostensible settlement deadline set forth in the letter, claiming it “overshadowed” the consumers' right to dispute the debt. Additionally, the letter supposedly contained a statement informing the plaintiffs that “[a]ny communications concerning disputed debts, including an instrument tendered in full satisfaction of a debt, must be sent to” a physical address. The case argues that this instruction implies to the least sophisticated consumer that he or she must submit any disputes in writing “when no such requirement exists” under the FDCPA.