According to consumers, Credit Management and CMI have engaged in conduct that flagrantly violates the federal Fair Debt Collection Practices Act. Under the Act, any representations made by a debt collector that are misleading, untrue or unfair violate the Act. The consumers allege that Credit Management and CMI have violated this standard through their actions. The consumers allege that the companies issued "form" type collection letters to Indiana residents that notified the residents that they had three weeks to remit payment before any adverse information would be provided to national credit agencies. However, the
consumers allege that in less than three weeks they were notified in a second letter that adverse information about their alleged debt had been already provided to national credit reporting agencies. According to the consumers, this action rendered the information provided in the initial communication misleading as well as a material misrepresentation, entitling them to damages.