Northstar Faces Another FDCPA Lawsuit Over 'Misleading' Letters

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A New York woman has filed a proposed class action lawsuit against Northstar Location Services, LLC claiming the debt collector sent her a collection letter that contained misleading information regarding her alleged debt. The letter supposedly set forth a “balance,” but did not indicate whether the balance included interest or other fees, as required under the Fair Debt Collection Practices Act (FDCPA), according to the suit. As a result, the suit argues that the least sophisticated consumer would be unable to determine the amount he or she would be required to pay in order to satisfy the alleged debt.

The complaint further claims that the letter listed the plaintiff’s “total fees since charge-off” as $0.00. According to the suit, this statement is misleading because it falsely implies that Northstar has the right to add future fees to the alleged debt when it “has no legal basis” to do so.