Credit Protection Association's Alleged Practices Draws Consumer's Lawsuit

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Credit Protection Association, LP is the defendant in a proposed class action filed this week that claims it ran afoul of the federal Fair Debt Collection Practices Act (FDCPA) in the course of its collection activities. The plaintiff alleges the Dallas-based company unlawfully attempted to collect from proposed class members a “convenience fee” in addition to the amounts of debt owed.

The case notes the plaintiff allegedly owed a past-due obligation to Cubesmart that was referred to the defendant for collection. The defendant, the lawsuit continues, mailed a notice to the plaintiff that, among other items, notified her that payment could be made online via credit card. After logging in to pay her obligation, the plaintiff was allegedly directed to a “pay by credit card screen” that noted an additional $5.25 “convenience” charge in addition to her initial balance owed.