MRS BPO False Urgency in Debt Collection Letter FDCPA Class Action

The Fair Debt Collection Practices Act (FDCPA) does not permit third-party debt collectors to send collection letters with false, deceptive, or misleading information in them. The complaint for this class action alleges that debt collector MRS BPO, LLC sent out such letters to debtors, suggesting it would not accept payments under its settlement offers unless they were made within two weeks.

The class for this action is all natural persons to whom MRS mailed a letter in the form of Exhibit A to the person’s New York address, between November 6, 2019 and November 27, 2020, where (1) the letter contained a settlement offer for a debt owed to JPMorgan Chase Bank, NA for less than the full amount of the debt, (2) the offer involved one or two payments with a deadline for each, and (3) the letter included the statement, “We are not obligated to renew these offers.”

Brian Skvarla allegedly owed a consumer debt to JPMorgan Chase Bank, NA., that had been incurred for personal, family, or household purposes. At some point, MRS appears to have been assigned to collect the debt.

MRS sent Skvarla a debt collection letter dated November 6, 2019, a copy of which is attached to the complaint as Exhibit A. The letter cited the amount of the debt as $20,093.12.

The letter also contained offers to resolve the debt.

The first suggested that Skvarla “[m]ake a ONE-Time payment of $7,233.52 by 11/20/2019” to settle his account.

The second suggested that he “[m]ake TWO Payments of $4,621.42 as follows: Payment 1 by 11/20/2019 Payment 2 by 12/20/2019” to settle his account.

A third option was for him to make monthly payments on the full amount of the debt.

The letter also contained the statement, “We are not obligated to renew these offers.”

The very near deadlines offered by MRS, the complaint alleges, “created a sense of urgency characteristic of one-time, take-it-or-leave it settlement offers by requiring an offer to be accepted only by its receipt of a payment and fixing the deadline for payment just fourteen days after the date of the letter.”

Because the letter was likely mailed on November 6 or sometime after that, and the deadlines offered required payment by November 20, Skvarla had less than two weeks to accept the offer and submit payment.

The complaint says that the sense of urgency created by the near due dates was false, and that it might lead a consumer into making a hasty decision about when to pay, which might not have been in the consumer’s best interests at the time.

Furthermore, the complaint claims that MRS would have accepted the settlement if Skvarla had made the payment “at any[ ]time at which the debt was placed with MRS for collection.”

Also, the complaint states that the statement that MRS was not obliged to renew the offer was also false, “because MRS is always obligated by the creditor to renew the offers stated in the Letter.”

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

MRS BPO False Urgency in Debt Collection Letter FDCPA Complaint

January 5, 2021

The Fair Debt Collection Practices Act (FDCPA) does not permit third-party debt collectors to send collection letters with false, deceptive, or misleading information in them. The complaint for this class action alleges that debt collector MRS BPO, LLC sent out such letters to debtors, suggesting it would not accept payments under its settlement offers unless they were made within two weeks.

MRS BPO False Urgency in Debt Collection Letter FDCPA Complaint

Case Event History

MRS BPO False Urgency in Debt Collection Letter FDCPA Complaint

January 5, 2021

The Fair Debt Collection Practices Act (FDCPA) does not permit third-party debt collectors to send collection letters with false, deceptive, or misleading information in them. The complaint for this class action alleges that debt collector MRS BPO, LLC sent out such letters to debtors, suggesting it would not accept payments under its settlement offers unless they were made within two weeks.

MRS BPO False Urgency in Debt Collection Letter FDCPA Complaint
Tags: Misleading or Confusing Debt Collection Letter, Unlawful Debt Collection