Suit Claims Capital Management Tricks Consumers into Paying False Settlements

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A proposed class action lawsuit has been filed against Capital Management Services, LP claiming that the debt collector misled consumers as to the amount and expiration of their settlement offers. The plaintiff in the case allegedly received a collection letter from Capital Management informing her that it would accept a settlement of less than her full balance and providing an address to which payment should be sent. The letter, however, failed to specify the amount of the settlement offer or when it would expire, according to the complaint. The suit argues that the letter’s “broad, open-ended language” is unlawful under the Fair Debt Collection Practices Act and constitutes “an unfair collection practice.” From the complaint:

“Capital Management’s language leaves open the possibility that the consumer will call the number and get a settlement amount, then make a payment at the settlement amount, only to be informed that the offer has since expired and Capital Management will continue to collect on the remaining balance.”