Suit Claims MRS BPO Illegally Discourages Consumers from Settling Debts

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MRS BPO, LLC is on the receiving end of a proposed class action lawsuit that takes issue with an allegedly misleading statement contained in collection letters the company sent to consumers. The plaintiff in the case, an Illinois man, says he received letters regarding two separate debts from the debt collector that contained the following statement:

“If we settle this debt with you for less than the full outstanding balance, Chase may offer you less favorable terms in the future for some Chase products or services, or may deny your application.”

The suit argues that the statement is “false” and was intended to discourage recipients from choosing to settle their accounts at the risk of being presented with “some unspecified” consequence in the future. According to the complaint, Chase would not, in fact, chastise debtors who have settled their debts with “less favorable terms” or a denied “application.”

Furthermore, the language in the letters, the suit argues, gives the false impression that the debt collector was required under the Fair Debt Collection Practices Act (FDCPA) to disclose the quoted statement to consumers since it is located directly below the required FDCPA disclosures. Overall, the complaint claims the letters were “a false representation” of the debts and the consequences of settling, and on top of that, were an illegal attempt to coerce consumers into paying off the full amount of their alleged debts.