NY Consumer Claims CAC Financial Corp. Failed to Disclose Interest

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A proposed class action alleges defendant CAC Financial Corp. sent a New York consumer a debt collection notice that could be misconstrued since it failed to disclose that the woman’s balance was accruing interest. Citing possible Fair Debt Collection Practices Act (FDCPA) issues, the lawsuit claims although the plaintiff’s balance was, in fact, increasing due to interest contractually agreed upon with the woman’s original creditor, the defendant still had an obligation to disclose in the notice that the obligation “could” or “will” grow over time. Moreover, the case says failure to disclose whether a consumer’s balance may increase could lead the individual, i.e. the least sophisticated consumer, to be unsure of whether paying the stated account balance would fully satisfy the debt.