Southwest Credit Systems Named in FDCPA Class Action

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A proposed class action lawsuit alleges Southwest Credit Systems, LP sent consumers contradictory collection notices that purportedly included debt settlement offers that conflicted with mandatory 30-day validation periods. Filed by three named plaintiffs, the complaint claims the defendant required consumers to call “within 45 days of receiving this letter” if they were interested in taking advantage of the purported deals being offered.

“Assuming [the collection notice] was actually mailed on September 28, 2016, the 30-day validation period identified in [the collection notice] would end shortly before the settlement offer in [the collection notice] expires,” one plaintiff claims. “The validation period begins when the consumer receives the validation notice, not when the debt collector mails it.”

Per another plaintiff’s collection notices referenced in the complaint, the defendant allegedly committed the same Fair Debt Collection Practices Act (FDCPA) violation by demanding a settlement payment be made shortly after the verification period, but failing to explain how the validation notice and purported settlement deadline “fit” together.

“The unsophisticated consumer would have no idea how to both seek verification of the debt and preserve the settlement offers in {both collection notices],” the complaint argues. “It is likely that the settlement offer would expire before the debt collector provides verification. The consumer would be left with little or no time to review the verification and determine whether to accept the settlement offer.”