fbpx

General Revenue Corp. Debt May Increase Statement FDCPA Class Action

Congress passed the Fair Debt Collection Practices Act (FDCPA) both to stop abusive debt collection practices and to make sure that debt collectors who did not use abusive practices were not put at a disadvantage. The complaint for this class action alleges that General Revenue Corporation (GRC) violated the FDCPA when it implied that the balance owing stated in its debt collection letter might increase over time.

The plaintiff in this case, Alter Y. Goldberg, incurred a debt to My Computer Career, for personal, family, or household purposes. At some point, the complaint claims “[u]pon information and belief,” GRC was assigned to collect the debt.

GRC sent Goldberg an initial debt collection letter dated October 27, 2020 stating that he owed $9,702.48.

At issue in this case is a paragraph casting doubt on this amount: “Because interest may be required to be paid on the outstanding portion of the balance, as well as late charges and other charges that may vary from day to day, the amount required to pay the balance in full on the day payment is sent may be greater than the amount stated here. If the amount stated here is paid, an adjustment may be necessary after a payment is received.” If so, the letter said, “notification will occur of any adjustment in the balance.”

The letter therefore advised Goldberg to call the company before he paid the debt in full.

The complaint asserts, “Upon information and belief, the amount due is not going up.” It also says, “Alternatively, even if that amount would actually increase, [GRC] did not intend to collect the increase.” Therefore, the complaint alleges, the statement that the amount will go up “is false and/or deceptive and materially misleading.”

Goldberg therefore is “unable to evaluate how much is truly being alleged as the correct balance, is being misled a[s] to the total owed, and cannot properly evaluate the demand for payment or how to address it.”

The FDCPA requires, in its Section 1692g, that the initial communication provide certain information in its initial contact or soon thereafter. One of the things required is the amount of the debt. GRC violated the law, the complaint says, because it did not properly and clearly tell Goldberg of the amount he owed.

The complaint says it also unfairly implied that the amount of the debt might increase and therefore “[u]nfairly represent[ed] the character, amount or legal status of the debt[.]”

The class for this action is all individuals

  • With addresses in New York
  • To whom GRC sent an initial letter
  • Trying to collect a consumer debt
  • Where the letter says that even if the addressee pays the total listed account balance, and adjustment may be necessary after GRC receives the payment, and
  • Where the letter was sent between May 13, 2020 and June 3, 2021.
Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

General Revenue Corp. Debt May Increase Statement FDCPA Complaint

May 13, 2021

Congress passed the Fair Debt Collection Practices Act (FDCPA) both to stop abusive debt collection practices and to make sure that debt collectors who did not use abusive practices were not put at a disadvantage. The complaint for this class action alleges that General Revenue Corporation (GRC) violated the FDCPA when it implied that the balance owing stated in its debt collection letter might increase over time.

General Revenue Corp. Debt May Increase Statement FDCPA Complaint

Case Event History

General Revenue Corp. Debt May Increase Statement FDCPA Complaint

May 13, 2021

Congress passed the Fair Debt Collection Practices Act (FDCPA) both to stop abusive debt collection practices and to make sure that debt collectors who did not use abusive practices were not put at a disadvantage. The complaint for this class action alleges that General Revenue Corporation (GRC) violated the FDCPA when it implied that the balance owing stated in its debt collection letter might increase over time.

General Revenue Corp. Debt May Increase Statement FDCPA Complaint
Tags: FDCPA, Failure to State Amount of Debt, Misleading or Confusing Debt Collection Letter, Unlawful Debt Collection