Forster & Garbus Collection Letter Balance and Interest FDCPA Class Action

The Fair Debt Collection Practices Act (FDCPA) tries to make third-party debt collectors provide clear and accurate information about consumer debts. The complaint for this class action alleges that debt collector Forster & Garbus violated the FDCPA when it sent debt collection letters that did not make clear the balance that was owed on the debt.

Plaintiff Chava Singer, who lives in Spring Valley, New York, allegedly ran up a debt to Barclays Bank Delaware. Eventually, a Notice of Judgment was issued by the Supreme Court of the State of New York, County of Rockland, that showed a balance of $6,211.56.

At some point, the complaint says, the debt was assigned to Forster & Garbus for collection. Forster & Garbus sent Singer a collection letter dated January 8, 2020, regarding the judgment against her. It showed that the balance owed was $6,126.56.

The letter stated, in part, “Unless satisfactory arrangements are made with this office to pay the full judgment balance, judgment proceedings may be instituted…” It also said, “Post judgment interest accrues from the entered judgment date of 01/07/2020, on the principal balance of $5,886.56 at the statutory rate.”

First, the complaint says, no explanation was given for the difference between the amount stated in the Notice of Judgment and the amount stated in the Forster & Garbus letter.

Second, the complaint alleges that the letter is misleading because it says that she must make arrangements to “pay the ‘full judgment balance’ to avoid enforcement proceedings yet the amount listed on [Forster & Garber’s] letter is not the full judgment balance.”

Third, the letter says that post-judgment interest accrues only on the principal, that is, $5,886.56. It cites “CPLR Section 5004” to support this statement, but the complaint alleges that this source says that the interest is calculated on the entire judgment balance and not only the principal.

The complaint claims that the misstatements about the amount of debt and the interest accrual make the letter confusing, deceptive, and misleading.

The class for this action is

  • All individuals with addresses in New York
  • To whom Forster & Garbus, LLP sent a letter in order to collect a consumer debt
  • Where the balance stated was different from the balance on the Notice of Judgment, and where no reason was given for the discrepancy, and
  • Where the letter was sent between January 7, 2020 and January 28, 2021.

A subclass has also been defined. It includes

  • All individuals with addresses in New York
  • To whom Forster & Garbus, LLP sent a letter in order to collect a consumer debt
  • Where the letter incorrectly said that post-judgment interest would accrue only on the principal balance, and
  • Where the letter was sent between January 7, 2020 and January 28, 2021.
Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Forster & Garbus Collection Letter Balance and Interest FDCPA Complaint

January 7, 2021

The Fair Debt Collection Practices Act (FDCPA) tries to make third-party debt collectors provide clear and accurate information about consumer debts. The complaint for this class action alleges that debt collector Forster & Garbus violated the FDCPA when it sent debt collection letters that did not make clear the balance that was owed on the debt.

Forster & Garbus Collection Letter Balance and Interest FDCPA Complaint

Case Event History

Forster & Garbus Collection Letter Balance and Interest FDCPA Complaint

January 7, 2021

The Fair Debt Collection Practices Act (FDCPA) tries to make third-party debt collectors provide clear and accurate information about consumer debts. The complaint for this class action alleges that debt collector Forster & Garbus violated the FDCPA when it sent debt collection letters that did not make clear the balance that was owed on the debt.

Forster & Garbus Collection Letter Balance and Interest FDCPA Complaint
Tags: FDCPA, Failure to State Amount of Debt, Misleading or Confusing Debt Collection Letter, Unlawful Debt Collection