Debtor Sues Collection Agency for Trying to Make a "Limited Time Deal" |
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A class action lawsuit was filed in the Southern District Court of Indiana against Professional Recovery Systems, LLC, a Colorado-based collection agency, for violations of the Fair Debt Collection Practices Act (FDCPA) which prohibits debt collectors from engaging in abusive, deceptive and unfair collection practices. Class members seek damages, attorney's fees and costs of the litigation.
Specifically, the complaint alleges that PRS sent Jennifer Mulry an initial collection letter dated April 19, 2004 demanding payment for a $681 debt that she allegedly owed to Bally's. Two months later, PRS contacted her and offered to settle the account for ninety (90) percent of the balance and broke down the balance into three monthly payments. Another letter came one month later and offered the same 90 percent offer, but this offer was for a limited time only.
Mulry brings the suit as she alleges that PRS violated the FDCPA by not providing her with a statement of the amount of the debt within five (5) days of its initial communication. She also alleges that PRS's offers were not limited in duration and that this was only a tactic to have her pay the account.
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Other Credit / Debt Cases of Interest
A class-action suit was filed in the U.S. District Court of Arizona alleging that CareMark Rx, Inc. intentionally concealed revenue in order to avoid paying certain commissions owed to consultants who marketed and sold its services. A class action lawsuit has been filed on behalf of New York residents who received collection letters from National Asset Management. The suit alleges that Affiliated failed to adhere to the requirements of the federal fair debt collection practices act in its interactions with debtors. A statewide class action has been filed in California against collection specialist, Bridgeport Financial, Inc. The action is brought on behalf of all California consumers who have received collection letters from Bridgeport that required them to dispute the validity of the debt under collection in writing only. The action is brought under the federal Fair Debt Collection Practices Act and seeks statutory damages as well as injunctive and declaratory relief. A class action lawsuit has been filed against Minnesota based collection agent Northland Group, Inc. The suit alleges that in its efforts to collect on debts allegedly due to Citibank, the defendant engaged in abusive and deceptive collection practices that violated federal fair debt collection practices laws. The suit seeks to certify a statewide class and collect actual and punitive damages on behalf of the plaintiffs. A class action has been filed against debt collection agency Amsterdam & Lewinter, LLP, on behalf of all persons with New York state addresses, to whom a collection letter was sent between July 15, 2003, and July 15, 2004. The action alleges that the defendants violated the federal Fair Debt Collection Practices Act by using deceptive trade practices in its attempts to collect an alleged debt. A class action lawsuit has been filed in the Eastern District Court of Pennsylvania against First Financial Asset Management, Inc., a Georgia-based collection agency, for violations of the Fair Debt Collection Practices Act (FDCPA) which prohibits debt collectors from engaging in abusive, deceptive and unfair collection practices. Class members seek injunctive, compensatory and punitive relief.
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