Class Action Accuses FEDChex of Charging Illegal Debt Collection Fee
by Erin Shaak
Last Updated on May 8, 2018
Spencer v. FEDChex Recovery LLC
Filed: December 21, 2017 ◆§ 4:17cv3850
FEDChex Recovery LLC is on the receiving end of a proposed class action lawsuit that claims it charged a consumer an illegal collection fee in violation of the Fair Debt Collection Practices Act.
FEDChex Recovery LLC is on the receiving end of a proposed class action lawsuit filed over alleged Fair Debt Collection Practices Act (FDCPA) violations. The complaint claims the defendant sent a Texas resident a collection letter that stated she owed a principal balance of $117.41 and demanded a $30.00 collection fee. According to the suit, the added fee – which the complaint notes was approximately 26 percent of the total debt amount – was “neither authorized by the underlying creditor nor permitted by law,” rendering it illegal under the FDCPA.
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