Class Action Claims CBCS Misled Wisconsin Consumer Regarding Debt Dispute Rights

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Credit Bureau Collection Services, which does business as CBCS, faces a Wisconsin consumer’s proposed class action over claims that the collection agency sent him a letter in which it misrepresented his debt dispute rights.

The suit says that the plaintiff received a December 2018 collection notice concerning an outstanding WE ENERGIES account that stated, in part:

“According to our records, your account(s) remains unpaid. If you have already made payment on your account(s), please send us proof of payment…”

The complaint argues this statement falsely implied that any debt dispute must be accompanied by proof of payment in order to be effective. Under the Fair Debt Collection Practices Act (FDCPA), the case says, a debt collector must allow a disputed debt to be reported as such regardless of whether the consumer has proof that the obligation was paid.