Two Debt Collectors Sued by Wisconsin Consumer Over Allegedly Misleading Letters

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A proposed class action alleges that Global Trust Management LLC (GTM) and National Credit Adjusters LLC (NCA) made false and confusing statements in letters sent to a Wisconsin consumer.

The timeline in the complaint begins in December 2017, when National Credit Adjusters allegedly sent a collection notice to the plaintiff regarding a debt incurred to Rise Credit. According to the suit, the letter indicated that the date of last payment was August 2017 and threatened that “a negative credit report reflecting on your credit record may be submitted to a credit reporting agency.”

In June 2018, the case continues, Global Trust Management sent the man another letter regarding the same debt and indicated that the date of last payment was “N/A.” The suit argues that as a result of the letters’ “contradictory statements” regarding his last payment, the plaintiff was left worried about “the prospect of false information” being included in his credit report, as referenced in the initial letter. Moreover, the suit says the defendants unfairly confused the man regarding crucial information, as the date of last payment would allow him to determine the statute of limitations on the debt.

The suit also takes issue with both letters’ identification of the plaintiff’s creditor. The NCA letter allegedly noted that “Rise” is the man’s “Original Creditor” and NCA is the “Current Owner,” servicer, and debt collector. GTM’s letter, according to the complaint, also listed Rise as the “Original Creditor” and NCA is the “Current Owner,” but designated GTM as the servicer and debt collector. The lawsuit argues that the unsophisticated consumer would be unsure as to “the scope of rights” of the “Current Owner” and whether GTM was collecting the debt on behalf of NCA, the original creditor, or “some undisclosed third-party debt buyer.”