Debt Settlement Offer Without Interest Notice Upheld as Lawful

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A debt collector’s offer to settle an outstanding debt didn’t need to inform the consumer that their balance could increase due to interest and fees, because it didn’t make the letter misleading under federal law, the Second Circuit said Friday.

Cristian Cortez incurred credit card debt which was placed with Forster & Garbus LLP for collection. The company mailed him a number of collection notices. In one letter, it noted Cortez’s outstanding balance and offered three payment options to settle the account for less than the full amount.

The company’s settlement offer wasn’t required under the Fair Debt Collection Practices …