New York, NY: Two debt collection companies associated with Victoria' Secret are facing a consumer fraud class action lawsuit over allegations they mislead Victoria' Secret cardholders regarding interest on debt.
Filed by Justina Luna of New Jersey, the lawsuit alleges Allied Interstate LLC is in violation of the Fair Debt Collection Practices Act (FDCPA) because it failed to properly inform her about interest that was accruing on her defaulted Victoria' Secret account when it sent her a collection letter in September 2012. Luna' Victoria' Secret credit card account was sold to CVF, a purchaser of defaulted debt. Luna also names CVF as a defendant because CVF is allegedly vicariously liable for Allied' conduct as it acted as an agent of Allied.
In the lawsuit, entitled Justina Luna v. Allied Interstate LLC et al., Case No. 3:13-cv-05404, in the U.S. District Court for the District of New Jersey,Luna claims Allied sent her a letter stating that it was attempting to collect on a $272.97 balance owed on her defaulted Victoria' Secret credit card. The letter did not indicate that interest would continue to accrue on the unpaid principal balance, according to Luna, but simply asserted she owed the stated amount only. "By sending the letter Allied violated the FDCPA because the collection letter was subject to two interpretations because it did not explain that interest would continue to accrue on the unpaid principal balance and asserted that a fixed sum was owed,"the complaint states.
The lawsuit continues, "The FDCPA broadly prohibits unfair or unconscionable collection methods; conduct which harasses, oppresses or abuses any debtor; and any false, deceptive or misleading statements, in connection with the collection of a debt and requires certain disclosures."
Further to the first letter, according to the lawsuit, Luna received another letter from Allied on June 25, stating that it was still attempting to collect the balance on her Victoria' Secret credit card. However, in this letter the amount owing was stated as $283.74. And it was in this letter that Allied informed Luna that interest was accruing on the account.
The class action lawsuit seeks to represent a putative class of New Jersey residents who received a letter from Allied that failed to inform them that interest would accrue on unpaid debts owed to Victoria' Secret. The lawsuit is seeking statutory damages, litigation expenses, attorneys' fees and other relief to be determined by the court.
