Northstar Location Services, LLC Slapped with FDCPA Case

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Northstar Location Services, LLC must defend a proposed class action’s allegations that the company violated the Fair Debt Collection Practices Act (FDCPA). Specifically, the lawsuit claims the defendant sent the plaintiff a collection notice stating the forgiveness of a debt amount of $600 or greater may be considered taxable income and, therefore, must be reported to the IRS. This language, the lawsuit says, is deceptive and misleading (and violates the FDCPA) because several exemptions exist in which settlements in excess of $600 do not need to be reported to the government agency.