Consumer Sues Retail Merchants Association Over ‘False’ Credit Reporting Threats

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Retail Merchants Association, Inc. (which does business as Credit Bureau of Louisiana) is facing a proposed class action lawsuit filed in Mississippi by a man who claims the company, in a collection notice, deceptively positioned itself as a credit reporting agency.

According to the complaint, the debt collector sent the plaintiff a letter containing the following statement:

“ALL UNPAID ACCOUNT INFORMATION IS ROUTINELY SUBMITTED TO THE CREDIT BUREAU OF LOUISIANA, WHERE IT IS RECORDED AND REPORTED TO ANY AND ALL INQUIRING CREDIT GRANTORS.”

The lawsuit argues the defendant’s statement “makes it appear as if [the defendant] is a credit reporting agency,” when in reality, “it is only making a report to itself.” This deceptive behavior violates the Fair Debt Collection Practices Act, according to the suit, as it threatens the consumer with “a real risk of financial harm” by feigning to be a credit reporting agency.