‘Deceptive’ Debt Collectors Monarch Recovery, Portfolio Face Class Action Lawsuit

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Monarch Recovery, Portfolio Debt Collection Class Action Lawsuit Overview:

• Why: The plaintiff claims the debt collectors sent a joint letter that was unclear and in violation of debt collections laws.
• Who: A North Carolina resident lodged a class action lawsuit against debt collectors Monarch Recovery Management and First Portfolio Ventures I.
• Where: The class action lawsuit was filed in North Carolina federal court.

A North Carolina resident filed a class action lawsuit against Monarch Recovery Management and First Portfolio Ventures I, two debt collectors, for violating debt laws with an unclear and deceptive collections letter. 

The lead plaintiff, Kathleen McKee, says she received a collection letter from Monarch Recovery regarding an alleged debt she had incurred from a Celtic Bank credit card. The letter identifies Portfolio as the creditor and states that Portfolio transferred the debt account to Monarch. 

McKee disputes the transfer, claiming that Monarch is a debt collector hired by Portfolio and does not own the alleged debt. The letter also contained “Additional information: Celtic Bank/Indigo MasterCard,” without explaining the relationship to Celtic Bank, which McKee claims caused her much confusion.

McKee filed the class action lawsuit on behalf of herself and individuals with addresses in the state of North Carolina to whom Monarch Recovery sent a letter on behalf of Portfolio attempting to collect a consumer debt. 

Monarch Recovery, Portfolio Confuse With Debt Collections Letter

The class action lawsuit claims that the letter’s wording makes it unclear to whom the debt is owed and which entity owns the account, a practice that the complaint says is “deceptive” and unlawful. 

The class action lawsuit also claims that the letter is noncompliant with a debt collections statute that is cited in the letter itself. The statute requires any disputes of debts to be sent to the collector “in writing” or by “written request”; however, Monarch Recovery and Portfolio allegedly write in their letter that McKee and the class may provide verbal communication. 

If Monarch and Portfolio intended to comply with the statute, McKee argues that they could not accept McKee’s verbal dispute, despite having allowed her to do so. Even if they had accepted it, the dispute and a ceasing of collections would not be able to continue as they would with a written dispute, claims the class action lawsuit. 

The class action lawsuit demands statutory and actual damages, costs of the action, and pre- and post-judgment interest. 

This is not the first time Monarch Recovery has been accused of violating debt collection laws. In 2014, an Indiana man filed a class action lawsuit against Monarch after receiving a misleading debt collection letter that misrepresented the money he owed. 

Have you ever received a similarly confusing debt collections letter from Monary Recovery or another company? Tell us about it in the comments below!

The plaintiff is represented by C. Randolph Emory of The Emory Law Firm, P.C.

The Monarch Recovery, Portfolio Debt Collection Class Action Lawsuit is McKee v. Monarch Recovery Management Inc., et al., Case No. 3:21-cv-00492-RJC-DSC, in the U.S. District Court for the Western District of North Carolina.

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