NY Man Hits Collecto with Claims of Multiple FDCPA Violations

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A New York man has filed a proposed class action lawsuit against Collecto, Inc., which does business as EOS CCA, Inc., claiming the debt collector failed to clearly specify in collection letters the amount of his alleged debt and unlawfully threatened to collect extra fees. According to the lawsuit, the letter contained an “amount due,” but neglected to disclose whether the amount included interest, whether interest would continue to accrue, or whether the interest would be waived. The suit argues that this lack of disclosure, and the resulting ambiguity around the true balance of the alleged debt, causes the letter to be misleading and unlawful under the Fair Debt Collection Practices Act.

The letter also lists “Fees Coll. Costs” of $0.00, which could falsely imply to the unsophisticated consumer that Collecto has the right to collect future fees, according to the complaint.

Additionally, the suit argues that the letter fails to clearly communicate the consumer’s right to dispute the alleged debt because it states this disclosure on the back of the letter where it is “overshadowed” by additional information.