More Legal Issues for Debt Collector Client Services

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Client Services, Inc. is the defendant in another proposed class action filed over alleged Fair Debt Collection Practices Act (FDCPA) abuses. The plaintiff, a New York man, alleges Client Services sent him a collection notice that failed to disclose whether his balance may increase due to interest and fees. The lawsuit argues that this conduct, when viewed from “least sophisticated consumer” perspective, is considered deceptive under the FDCPA and could lead the debtor to be unsure as to whether paying the stated balance would fully satisfy the debt.

“In this case, the ‘balance due’ was increasing due to interest per the creditor’s contract,” the complaint reads. “Nevertheless, the collection notice did not disclose that the amount of the debt stated in the letter ‘could’ or ‘will’ increase over time.”