NY Woman Sues The CBE Group Over Debt Collection Letter

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Iowa debt collection firm The CBE Group, Inc. is the defendant in a New York woman’s proposed class action that alleges the company sent her a collection notice that did not comply with Fair Debt Collection Practices Act (FDCPA) regulations. The lawsuit claims the defendant’s collection notice failed to accurately convey the amount of debt owed “from the perspective of the least sophisticated consumer.” More specifically, The CBE Group allegedly attempted to collect “collection fees” of $116.83 in its notice to the plaintiff, yet did not specify the date on which the collection fees would be added to the woman’s balance.

“The letter fails to contain an explanation, understandable by the least sophisticated consumer, of any collection fees that may cause the amount stated to increase in the future,” the lawsuit alleges.

Later, the complaint argues the least sophisticated consumer may be unable to determine what monetary amount would fully satisfy the debt because the defendant allegedly did not disclose whether the balance may increase due to interest and fees.