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Firstsource Debt Settlement Requirements FDCPA Class Action

The complaint for this class action finds two problems with a debt collection letter sent to consumers by Firstsource Advantage, LLC: a requirement for consumers to call Firstsource in order to accept a settlement offer, and an unclear deadline. The complaint brings suit under the Fair Debt Collection Practices Act (FDCPA).

The case originates with a debt allegedly incurred by plaintiff Hopelyn Miller-Jack to American Express for personal, family, or household purposes. At some point in time, this alleged debt went into default and was eventually assigned to Firstsource for collection. 

Firstsource sent Miller-Jack a collection letter dated January 2, 2019, a copy of which was attached to the original complaint as Exhibit 1.

At issue are two lines in the letter. The first is, “Call by 01-27-19,” which is underlined, in bold type, and center-aligned in the middle of the body of the letter. It reinforces this with another line, “To accept this offer, you must call us … and pay the settlement amount by 01-27-19.”

The complaint claims that the letter makes calling Firstsource a condition of accepting the settlement offer. The consumer “has no other choice but to call highly trained debt collectors who would most likely employ aggressive, misleading, and manipulative tactics in order to collect the alleged Debt.” An unsophisticated consumer could therefore be “misled into remitting payment or entering into a repayment plan she may not be able to afford, for fear of being subjected to intimidating collection efforts for the full amount of the alleged Debt.”

In addition to this, the complaint point out that a letter violates the FDCPA “if, in the eyes of the least sophisticated consumer, it is open to more than one reasonable interpretation, at least one of which is inaccurate. The issue here is what action must be completed by the deadline: Is this the date by which the consumer must send the payment, or the date by which it must be received by Firstsource?

Two classes have been defined for this action. 

  • The first is all consumers to whom Firstsource sent a collection letter, sent between January 3, 2019 and the present, which required the consumer to contact Firstsource by phone in order to accept a settlement offer.
  • The second is all consumers to whom Firstsource sent a collection letter, sent between January 3, 2019 and the present, with a deadline for accepting a settlement offer which did not state whether that deadline was the date by which payment must be sent by the consumer or received by Firstsource.
Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Firstsource Debt Settlement Requirements FDCPA Complaint

January 3, 2020

The complaint for this class action finds two problems with a debt collection letter sent to consumers by Firstsource Advantage, LLC: a requirement for consumers to call Firstsource in order to accept a settlement offer, and an unclear deadline. The complaint brings suit under the Fair Debt Collection Practices Act (FDCPA).

firstsouce_advantage_fdcpa_complaint.pdf

Case Event History

Firstsource Debt Settlement Requirements FDCPA Complaint

January 3, 2020

The complaint for this class action finds two problems with a debt collection letter sent to consumers by Firstsource Advantage, LLC: a requirement for consumers to call Firstsource in order to accept a settlement offer, and an unclear deadline. The complaint brings suit under the Fair Debt Collection Practices Act (FDCPA).

firstsouce_advantage_fdcpa_complaint.pdf
Tags: FDCPA, Misleading or Confusing Debt Collection Letter, Unlawful Debt Collection