New York Consumer Accuses Four Debt Collectors of Using Misleading Collection Practices

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Forster & Garbus, LLP; two of the firm’s attorneys; LVNV Funding LLC; Sherman Financial Group LLC; and Resurgent Capital Services L.P. are the defendants in a proposed class action filed by a consumer who alleges the companies engaged in deceptive and misleading debt collection practices.

Filed in New York, the lawsuit takes issue with a letter sent to the plaintiff by Forster & Garbus on behalf of LVNV Funding. According to the suit, the letter listed a $873.61 “Balance Due as of October 19, 2017” and stated, in part:

“If you don’t take advantage of this offer, interest may subsequently accrue on this account.”

The case argues the letter misled the plaintiff in that it implied her balance would increase should she decline the offer when, in fact, it would not. Further, the suit claims the defendants failed to clearly convey the woman’s amount of debt by neglecting to explain “the basis for the accrual of any interest.”