American Medical Collection Agency Sued Over Allegedly Improper Demands for Payment

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action lawsuit has been filed against Retrieval-Masters Creditors Bureau, Inc. (which does business as American Medical Collection Agency) over claims that it unlawfully demanded payment from a consumer before the 30-day validation period ended during which she could dispute the alleged debt. The plaintiff says she received a collection letter from the defendant that requested payment “immediately” and informed her that no amount was “too small for [the debt collector] to pursue.” The suit argues that these aggressive statements overshadowed the plaintiff’s right to dispute the debt or request validation up to 30 days after receiving the defendant’s initial communication.

As explained in the complaint:

“Demanding immediate payment without providing transitional language explaining that such demand does not override the consumer’s right to dispute the debt or demand validation of the debt is a violation of the [Fair Debt Collection Practices Act].”