United Collection Bureau Accused of Misleading Debtors

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United Collection Bureau, Inc. is facing a proposed class action lawsuit filed by three individuals alleging Fair Debt Collection Practices Act (FDCPA) violations. The first plaintiff says she received a debt collection letter that stated her “Current Account Balance,” noted that she owed the amount listed “as of the date of this letter,” and referred to a “full balance on the account.” The suit argues that this language implied the plaintiff’s balance was dynamic and may increase due to undisclosed interest or other fees. According to the complaint, the defendant neglected its obligation to advise the plaintiff whether her balance would increase and provide her with enough information to calculate how much she actually owed at a given time.

On top of this, all the plaintiffs claim their collection letters presented them with settlement offers and indicated how much they would save if they accepted the offers. According to the complaint, each offer deducted over $600 from the original balance, meaning if the settlement were accepted, the defendant would possibly be required to report the debt forgiveness to the IRS, resulting in tax consequences for the plaintiffs. The suit argues that the plaintiffs would then be obligated to pay the IRS and would therefore be saving less than the defendant indicated in the letters.