FBCS, LVNV Funding Confusing Debt Collection Letter Class Action

The purpose of the Fair Dept Collection Practices Act (FDCPA) is to protect consumers from deceptive, harassing, or abusive debt collection practices. The complaint for this class action brings suit against debt collectors FBCS, Inc. and LVNV Funding, LLC under the FDCPA, alleging that the companies sent out a confusing or misleading debt collection letter.

The class for this action is all consumers to whom the defendants in this case sent a collection letter substantially similar to the one sent to the plaintiff in this case, between November 3, 2019 and the present.

In judging whether a debt collection communication is misleading or confusing, the standard under the FDCPA is whether the “least sophisticated consumer” would be misled or confused. I

t is not necessary that the plaintiff in the case have actually been misled or confused. The complaint quotes the findings of an earlier case as saying that “the FDCPA enlists the effort of sophisticated consumers … as ‘private attorneys general’ to aid their less sophisticated counterparts, who are unlikely themselves to bring suit under the Act, but who are assumed by the Act to benefit from the deterrent effect of civil actions brought by others.”

The complaint states, “If a debt collector’s communication is ‘reasonably susceptible to an inaccurate reading’ by the least sophisticated consumer, it violates the FDCPA.” It quotes findings from another case to also contend, “Similarly, a communication violates the FDCPA if it is ‘open to more than one reasonable interpretation, at least one of which is inaccurate,’ or if the communication ‘would make the least sophisticated consumer uncertain as to her rights.’”

The complaint points to two parts of the letter sent by the companies to plaintiff Kyujae Cho.

First, it says, “Pay the reduced amount of $6,540.98 to us in one payment due on 08/06/2020.” However, it does not make clear whether the payment must be received by the debt collectors by that date or whether it only need be sent, or mailed, by that date.

Second, while a settlement offer itself is not a problem, it “runs afoul of the FDCPA if it impresses upon the least sophisticated consumer that if he or she does not accept the settlement, he or she will have no further opportunity to settle the alleged Debt for less than the full amount.”

According to the complaint, the letter should contain a line such as “We are not obligated to renew this offer” in order ro prevent a confusing or false impression.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

FBCS, LVNV Funding Confusing Debt Collection Letter Complaint

November 3, 2020

The purpose of the Fair Dept Collection Practices Act (FDCPA) is to protect consumers from deceptive, harassing, or abusive debt collection practices. The complaint for this class action brings suit against debt collectors FBCS, Inc. and LVNV Funding, LLC under the FDCPA, alleging that the companies sent out a confusing or misleading debt collection letter.

FBCS, LVNV Funding Confusing Debt Collection Letter Complaint

Case Event History

FBCS, LVNV Funding Confusing Debt Collection Letter Complaint

November 3, 2020

The purpose of the Fair Dept Collection Practices Act (FDCPA) is to protect consumers from deceptive, harassing, or abusive debt collection practices. The complaint for this class action brings suit against debt collectors FBCS, Inc. and LVNV Funding, LLC under the FDCPA, alleging that the companies sent out a confusing or misleading debt collection letter.

FBCS, LVNV Funding Confusing Debt Collection Letter Complaint
Tags: FDCPA, Misleading or Confusing Debt Collection Letter, Unlawful Debt Collection