Suit Claims Alltran Financial Failed to Comply with Debt Collection Law

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Alltran Financial, LP is on the receiving end of a proposed class action lawsuit that takes issue with a collection letter it sent to a New York consumer. The letter allegedly informed the woman that if she decided to accept the defendant’s settlement offer, her creditor “may offer [her] less favorable terms in the future.” This statement falsely implied, according to the complaint, that if the plaintiff instead paid the full balance of the alleged debt, she would improve “her overall creditworthiness.”

The complaint then notes that the letter provided the plaintiff’s “amount due as of November 9, 2017,” arguing that this language suggested to the plaintiff that her balance would increase in the future and she would benefit from paying off the account as soon as possible. The suit claims the defendant violated federal debt collection law because it either failed to inform the plaintiff that her account was increasing or falsely implied that her account was increasing when it would remain static.