Southwest Credit Systems Hit with FDCPA Class Action

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Southwest Credit Systems, LP is the defendant in a proposed class action that claims it sent a New York consumer a collection letter that violated several provisions of the Fair Debt Collection Practices Act (FDCPA). The plaintiff in the case alleges that she received a collection letter from Southwest Credit outlining a $19.00 “Collection Fee” that the suit says was not authorized by the plaintiff’s creditor and was therefore illegal.

The complaint further claims the defendant provided a “take it or leave it” settlement offer that the debt collector implied was only valid if the plaintiff’s payment was received “within 45 days of receiving this letter.” The suit argues that, in reality, the offer was available at any time and the defendant’s “sham” deadline was an illegal attempt to threaten the plaintiff into paying off the debt quickly.

Additionally, the complaint takes issue with the ambiguity of the defendant’s demand for payment “within 45 days,” claiming Southwest Credit would have no way to verify whether the consumer paid within the given timeframe. “This leaves the settlement offer acceptable or not at the whim of the Defendant,” the complaint attests, noting that the debt collector could refuse to accept a settlement payment that the consumer believed was paid “in the allotted time period.”