United Recovery Systems Hit with NY Debtor's FDCPA Lawsuit

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In a proposed class action lawsuit, a New York woman alleges United Recovery System LP ran afoul of the federal Fair Debt Collection Practices Act (FDCPA) when it failed to disclose whether the amount owed may increase due to accrued interest or fees. Describing the defendant’s notice as “likely to be misunderstood by an unsophisticated consumer,” the lawsuit claims United Recovery Systems sent the plaintiff (and proposed class members) a collect notice in which it failed to disclose the date on which the “current amount due” was tallied and if the total balance might be greater than the payment amount demanded.

In the case at hand, the plaintiff’s current amount due did include originally agreed upon interest, principal and fees, yet United Recovery Systems alleged violated the FDCPA by failing to state this. Such conduct, the complaint argues, could lead the unsophisticated consumer to be unsure of whether paying the amount listed in the notice would full clear his or her account.