Collection Letter Allegedly Misstating Debt Cap Gets Court OK

A debt collection agency shook off a debtor’s Fair Debt Collection Practices Act claims because the collection letter it sent, demanding zero in fees and interest but stating that the amount could go up, was permissible, the Fifth Circuit said.

R.A. Rogers Inc. doesn’t collect interest or other charges on debts referred to it by the creditor, but that didn’t make the dunning letter false, deceptive, or misleading, the U.S. Court of Appeals for the Fifth Circuit said.

The disclaimer merely expresses a common-sense truism about borrowing—if interest is accruing on a debt, then the amount due may go up—and ...