Debt Collector FirstCredit Sued Over Allegedly Unlawful Payment Service Fee

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FirstCredit Inc. is on the receiving end of a proposed class action that alleges it misrepresented an Ohio consumer’s debt amount by attempting to impose a collection fee for certain payments.

According to the case, the plaintiff received a letter from the defendant in March 2018 that indicated a $3.50 “service fee” would be charged for credit card payments made towards her medical debt. The case argues this fee misled the woman into thinking she owed more money than she actually did.

“The addition of this collection fee by Defendant which was not authorized by the agreement creating the debt or permitted by law, was an attempt to collect an amount not owed by Plaintiff,” the suit reads.