Credit Management Facing Lawsuit Over ‘Misleading’ Check Processing Policy Info

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A Wisconsin consumer has filed a proposed class action against Credit Management, LP over a collection letter (Exhibit A) the company mailed in December 2017 for an obligation supposedly owed to Time Warner. The plaintiff’s claims center on statements included in the notice concerning the defendant’s “Check Processing Policy,” which the complaint alleges does not jibe with Wisconsin state law.

The defendant’s check processing policy purports to authorize the company to electronically debit a consumer’s account, as well as charge him or her “any applicable fees,” should the check be returned unpaid. The lawsuit claims that certain exceptions aside, a licensed collection agency is not authorized to charge the debtor “any fee, handling charge, mileage costs or other out-of-pocket expenses” incurred while attempting to collect an obligation.

“On its face, Exhibit A is deceptive and confusing to the consumer because it instructs consumers to mail payments to Credit Management but confusingly instructs the consumer that the creditor’s policies may dictate the processing of [non-sufficient funds] checks,” the lawsuit argues.