Debt Collector Overshadows Consumer’s Right to Dispute, Suit Says

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Retrieval-Masters Creditors Bureau, Inc. (which does business as American Medical Collection Agency) is on the receiving end of a proposed class action lawsuit claiming it failed to comply with provisions of the Fair Debt Collection Practices Act. In particular, the suit says the defendant sent a collection letter to the plaintiff containing, “in highlighted text bigger than any other text on the page,” the following statement: “IMMEDIATE PAYMENT REQUIRED.”

The suit argues this language overshadows the consumer’s right to dispute the debt and obtain verification during a 30-day validation period. In fact, the complaint continues, the defendant included this required information on the back of the letter, which it says would “likely make the least sophisticated consumer uncertain as to her rights.” The FDCPA prohibits debt collectors from contradicting or overshadowing the notices they must provide regarding consumers’ rights, the suit argues.