Receivables Performance Management Facing Debt Collection Lawsuit in NY

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A proposed class action filed in New York claims Receivables Performance Management, LLC sent the plaintiff a debt collection notice in which the company “misstated the actual amount of the debt” by failing to itemize expenses or explain the debt in any way. The case alleges the notice in question failed to disclose that the defendant was attempting to collect a $69.26 “collection fee” that was not broken out from the stated “total due” of $453.99.

“Since the collection fee that the defendant is attempting to collect is a fee in excess of the actual debt, it must be explicitly itemized as such, yet the defendant chose to withhold such information,” the complaint alleges, arguing that Receivables Performance Management unilaterally stating that $453.99 was the debt amount owed was a misstatement and a violation of the Fair Debt Collection Practices Act (FDCPA).