United Collection Bureau Facing FDCPA Class Action

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United Collection Bureau, Inc. is on the receiving end of a proposed class action lawsuit that alleges violations of the Fair Debt Collection Practices Act (FDCPA). The plaintiff says he received a collection letter from the defendant that stated the following:

“As of the date of this letter, you owe the above stated New Balance amount. Because of interest and/or other charges that may vary from day to day, the amount due on the day you pay may be greater. Hence, if you pay the amount shown above, an adjustment may be necessary after your payment is received.”

The complaint claims the phrase “New Balance” and the letter’s warning that it “may vary from day to day” imply that the amount in the letter will change. The suit argues that the defendant failed its obligation to clearly convey the plaintiff’s amount of debt because it neglected to provide him with the information needed to calculate how much he supposedly owed on a given day.