Class Action Claims American Medical Collection Agency Misled Debtor

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A New York man’s proposed class action lawsuit against American Medical Collection Agency claims the company violated the Fair Debt Collection Practices Act (FDCPA) by failing to mention in a collection notice whether the state balance owed may increase due to interest and/or fees. Failing to include safe harbor language pertaining to the accrual of interest and fees, the lawsuit claims, can lead to the unsophisticated consumer mistakenly believing he or she could pay a debt amount in full by paying the amount listed on the notice.

“However, since contractual or statutory interest is automatically accruing daily, and since there are undisclosed legal fees that will accrue, a consumer who pays the ‘amount due’ stated on the notice will be unaware as to whether or not the debt has been paid in full,” the lawsuit argues.