American Medical Collection Agency Socked with FDCPA Lawsuit

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A proposed class action citing alleged violations of the Fair Debt Collection Practices Act (FDCPA) has been filed against American Medical Collection Agency. The 17-page lawsuit claims the defendant sent the plaintiff a collection notice that unlawfully failed to note whether the stated account balance may increase due to the accrual of interest and/or fees. Failure to disclose the potential accrual of interest or fees, the lawsuit claims, could cause the unsophisticated consumer to be uncertain as to the actual amount of money owed.

“A reasonable consumer could read the notice and be misled into believing that he or she could pay her debt in full by paying the amount listed on the notice,” the lawsuit says. “However, since contractual or statutory interest is automatically accruing daily, and since there are undisclosed legal fees that will accrue, a consumer pays the ‘amount due’ stated on the notice will be unaware as to whether or not the debt has been paid in full.”