Suit Claims Northstar's Letters Point Consumers in the Wrong Direction

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A New York woman has filed suit against debt collector Northstar Location Services, LLC for supposedly charging illegal fees and neglecting to clearly state the amount of debt she allegedly owed. According to the suit, the plaintiff received a collection letter from Northstar that demanded $100 of non-interest fees. The complaint claims these fees are “a threat to take action that cannot legally be taken” by the defendant because the creditor had not authorized these extra charges.

The suit also alleges that Northstar failed to specify whether the “total amount” due in the letter would increase due to interest or whether interest would be waived. The language in the letter would leave the unsophisticated consumer unable to determine how much he or she needed to pay to settle the account, according to the complaint.