Three New York Consumers Claim Genpact Services Failed to Explain ‘Other Charges’ in Collection Letter

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Three New York consumers have filed suit against Genpact Services LLC alleging the company engaged in unlawful debt collection practices. The consumers claim they each received collection notices from the defendant in which the company failed to accurately state their debt balances as required by the Fair Debt Collection Practices Act (FDCPA). 

According to the lawsuit, the plaintiffs each received a letter from the defendant between August and September 2017. The letters allegedly stated a “total account balance” and an “amount now due” while noting that the individuals’ balance may increase due to “other charges.” In particular, the case takes issue with the following statement included in the letters:

“Your total account balance (and with it, the amount now due) may increase because of interest or other charges.”

The suit claims that the defendant failed to indicate the nature of the "other charges" and stated only that "these unspecified charges may cause the balance to increase, which is insufficient for the purposes of accurately informing [the plaintiff] 'that the amount of the debt stated in the letter will increase over time.'" 

As such, the lawsuit argues Genpact failed to “clearly convey” the debt balance, as required under the FDCPA, as the “least sophisticated consumer” would be unable to determine what he or she will need to pay to resolve the debt "at any given moment in the future."