A class action has been filed against DBS Collection Agency of Zanesville, Ohio, on behalf of all persons who were sued by the company in collection lawsuits between August 1998 and March 2001, alleging that the company committed mail and wire fraud and violated consumers' constitutional rights, the federal Fair Debt Collection Practices Act and Ohio's Consumer Sales Practices Act. The action seeks unspecified compensatory damages.
Ed and Carla Foster allege that they are among many area residents who had their bank accounts frozen by DBS without any notice. In their case, it was allegedly done to them after they were unable to pay off a debt that had accrued after Carla suffered a severely broken arm and was off work for more than six months. The action alleges that Kathy Dickerson, doing business as DBS, filed a small claims action against the Fosters in Zanesville Municipal Court over Carla's unpaid medical bills, even though the Fosters attempted to work out a payment plan with the understanding DBS would stop legal action against the them. The Fosters allegedly made a $500 payment, but a bad winter meant little work for Mr. Foster, a truck driver, and his income slowed so that the family was unable to make timely payments.
DBS allegedly never dismissed the claim, and used it for leverage against the Fosters. When the Fosters contacted a non-profit consumer credit counseling agency to help negotiate with creditors, DBS allegedly refused to work with the credit counseling agency and had the court enter a default judgment against the Fosters. The company allegedly attached the Fosters' bank accounts, in effect freezing all their assets. They learned of DBS's actions was when the bank refused to pay on their checks.
The action alleges that Kathy Dickerson should not have been able to take any action on DBS' behalf in the first place, because she was never legally certified to do business as DBS. Allegedly, DBS' former owner, Mary Jane Slaughter, who died in November 1998, never formally transferred ownership of the business and the right to use the name DBS to Ms. Dickerson.