NY Woman Claims FMS Neglects FDCPA Compliance

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A New York woman has filed suit against FMS Inc., claiming the debt collector failed to clearly indicate in collection letters the amount of her alleged debt and threatened to charge illegal fees. The letter supposedly disclosed a “total balance due” without mentioning whether the total amount included interest or fees, or whether they would be added in the future. The suit argues that the letter could be interpreted to have more than one meaning, rendering it illegal under the Fair Debt Collection Practices Act (FDCPA). “Knowing the amount of the debt affects how a consumer responds to a debt collector’s attempts to collect the debt,” the complaint claims.

The letter also notes “charges or fees accrued since charge-off,” which amount to “$0.00,” according to the suit. This statement allegedly violates the FDCPA because it falsely implies that FMS is permitted to add additional fees to the debt.