NRC Nations Recovery Center Hit with FDCPA Lawsuit

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NRC Nations Recovery Center, Inc. is facing claims that it violated the Fair Debt Collection Practices Act by failing to clearly state in a collection letter the amount of a consumer’s alleged debt. In a proposed class action lawsuit filed against the debt collector, a New York consumer alleges the defendant sent her a letter informing her that the balance she supposedly owed may increase due to interest. The suit argues, however, that the letter unlawfully failed to provide necessary additional information about the purported interest, including:

• whether the amount listed already included interest;
• what portion of the amount listed is principal;
• the amount of the accrued interest, if included;
• when interest will be applied;
• the interest rate; and
• the amount of interest added per day/week/month/any measurable period.

As a result of these non-disclosures, the letter fails to comply with the FDCPA’s requirement that debt collectors clearly communicate the true amount of consumers’ debts, the suit says.