Consumer Claims Debt Collector Falsely Implies Unlimited Fees

New to ClassAction.org? Read our Newswire Disclaimer

Berks Credit & Collections, Inc. is the defendant in a proposed class action that alleges it used a “false, deceptive and misleading representation” in its attempt to collect a debt. The plaintiff claims she received a letter from the debt collector that failed to identify her creditor and stated: “All returned checks are subject to a minimum charge of $25.00.” The suit argues that Berks Credit & Collections is, first of all, required to clearly identify the consumer’s creditor, and secondly, not permitted to charge a fee of more than $20 for a returned check. It further alleges that the defendant’s mention of a minimum returned check fee implies to the unsophisticated consumer that the amount of the charge is up to its “unfettered discretion,” when in reality, the additional fee is limited under state law.