Weltman, Weinberg, & Reis Sent Misleading Collection Letter, Lawsuit Alleges

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Out of New York federal court comes a proposed class action accusing Weltman, Weinberg, & Reis Co., LPA of debt collection abuses stemming from a letter in which the agency allegedly failed to definitively state whether a consumer’s debt amount was subject to accruing interest or fees.

According to the complaint, the defendant sent a collection notice to a consumer in July 2018 that implied his debt balance may increase. The letter allegedly stated, in part:

“Balance due as of 7/25/2018: $2,716.32”
"Total amount due at charge-off: $2.421.19
Total Interest Charged Since Charge-off: $287.69
Total Charges and Fees Since Charge-off: $7.44"

“While it is typical for a collection letter to state an ‘amount due’ or an ‘account balance’, it is not typical for a collection letter to state that the amount owed is as of a specific date, as such language implies that the balance will increase at a different date,” the complaint reads.

The case argues the letter did not clearly convey the consumer’s debt in that it “does not clearly state either that the amount will or will not increase” at a later date.