Nationwide Credit Hit with Proposed Class Action Over ‘Unclear’ Collection Letters

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Nationwide Credit, Inc. is on the receiving end of a proposed class action lawsuit that claims it failed to clearly and accurately communicate the amount of a consumer’s alleged debt in a collection letter it sent. According to the suit, the plaintiff received a letter from the debt collector that stated the following:

“The Account Balance above reflects the total balance due as of the date of this letter. The itemization reflects post charge-off activity we received from American Express and as such is subject to timing and system limitations.”

The complaint claims that the letter failed to mention whether interest or late fees would be added to the balance, which hinders the plaintiff’s ability to calculate how much he supposedly owed on a given day. The suit also argues that the phrase “timing and system limitations” was not explained in the letter, causing further confusion for the plaintiff and clouding the true amount of his alleged debt.