Woman Claims Debt Collectors Demanded More Than Minimum Payment

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Bonded Collection Corporation and Colony Brands, Inc. have been named as defendants in a proposed class action alleging violations of the Fair Debt Collection Practices Act (FDCPA). The case claims Colony – which does business as Montgomery Ward, Midnight Velvet, and Through the Country Door, among others – sent a Wisconsin woman a credit card statement that included a “new balance” of $321.25, a “payment due date” of September 5, 2017, and a “minimum payment due” of $135.60.

A few days later, the plaintiff allegedly received a debt collection letter from Bonded Collection Corporation that attempted to collect a “balance due” of $321.25. The suit argues that the letter misrepresented the amount due by demanding the plaintiff’s entire balance rather than just the minimum payment listed on her statement. According to the case, she could have been misled into believing her debt had been accelerated and she owed the full balance, despite the fact that she had never received a “Notice of Right to Cure” from her creditor.