Class Action Says Certified Recovery Misrepresented Wisconsin Consumer’s Medical Debt

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Certified Recovery Inc. has been hit with a proposed class action that claims the collection agency falsely implied that a Wisconsin consumer’s medical debt was accruing interest and other charges.

The suit says that the plaintiff received a letter in December 2018 regarding a $399.95 debt incurred for ambulance services. The letter allegedly stated, in part:

“Because of interest and other charges that may vary from day to day, the amount due on the day you pay may be greater.”

Citing a Seventh Circuit decision on unfair and misleading collection practices with regard to medical debts, the lawsuit argues Certified Recovery’s implication that late charges and other charges may be applied to the plaintiff’s obligation is misleading. Specifically, the lawsuit says the Seventh Circuit ruled that references to “other charges” are misleading to the unsophisticated consumer in that the individual “would likely have no way of understanding how such ‘charges’ would be calculated” and left to guess how much his or her balance may increase. Moreover, the Seventh Circuit, the case continues, identified that Wisconsin law does not provide for late and other charges to accrue on medical debts.

Lastly, the suit argues that the defendant threatened to take action that it could not legally take, in violation of the Fair Debt Collection Practices Act (FDCPA).