Continental Service Group Pegged with Debt Collection Lawsuit

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A proposed class action filed in New York against Continental Service Group, Inc. (which does business as Conserve) alleges the company attempted to collect money from the plaintiff using “deceptive representations.” According to the complaint, the plaintiff began receiving calls from a debt collector working on behalf of the defendant informing the man he owed loans in excess of $24,000. This came as a surprise to the plaintiff, the complaint says, because the man had allegedly already consolidated several loans. Upon this news, the plaintiff disputed the new debt over the phone, the lawsuit reads, and followed up the call by sending the defendant a letter requesting verification. The defendant allegedly told the plaintiff he would receive verification documentation shortly, but that he would ultimately have to pay the debt if he “did not want his credit to be effected,” the case continues.

After reviewing the verification documents sent by the defendant, the plaintiff allegedly informed the company’s debt collector that the new debt’s interest and $6,000 in collection costs were unfair, and that he would not be paying those amounts because the 30 percent collection fee only comes into play for legal proceedings. The complaint claims the defendant violated the Fair Debt Collection Practices Act (FDCPA) by continuing its collection efforts even though the plaintiff had requested verification and prior to the man receiving verification documents.