Two WI Consumers Sue Debt Collector Northstar Location Services

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A proposed class action filed in Wisconsin over alleged Fair Debt Collection Practices Act (FDCPA) violations claims Northstar Location Services, LLC sent the suit’s two named plaintiffs collection notices that were wholly ambiguous and confusing. According to the complaint, one plaintiff received a notice claiming Northstar would, upon settlement of her debt for less than the full amount, “send notification to the credit reporting agencies to reflect the settlement.” The case wages such a statement, particularly the “reflect the settlement” part, is deceptive under the FDCPA because an unsophisticated consumer may be unable to determine whether a discounted settlement would lead to the original creditor, Barclays, reporting to agencies that the account was paid in full, settled in full, or partially paid with an outstanding balance.

The case then claims the other named plaintiff received a notice from Northstar informing him he may be eligible for several repayment options, and that the company’s representatives are able to negotiate discounted payment options. According to the lawsuit, this tactic is merely an attempt to get the plaintiff to call Northstar.