New York Consumer Sues Four Debt Collectors Over Allegedly Misleading Letter

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A New York consumer has filed suit against four companies over an allegedly misleading collection notice that she claims failed to clearly convey her debt amount.

According to the case, Financial Recovery Services, Inc. sent the plaintiff a letter in October 2017 regarding an alleged WebBank credit card debt. The suit—which also names the woman’s creditors, Sherman Financial Group LLC; CACH, LLC; and Resurgent Capital Services L.P., as defendants—says the letter stated, in part:

“As of the date of this letter, you owe the outstanding balance of $25,915.59
Balance Due as of October 11, 2017: $25,915.59”

The case argues that the notice’s language implied that the debt amount would change at a later date yet failed to explain any possible interest or charges accruing on the account.