Diversified Adjustment Service Sued Over 'Secret Fees'

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Diversified Adjustment Service, Incorporated is on the receiving end of a proposed class action lawsuit that claims it violated the Fair Debt Collection Practices Act (FDCPA) by attempting to secretly charge an illegal collection fee. The plaintiff in the case alleges that the debt collector sent him a letter containing a total balance that was not itemized into the amount of principal and the amount of extra fees. Part of the total included an undisclosed collection fee of $21.95, and therefore, was not an accurate representation of the amount of the plaintiff’s alleged debt, the suit argues. It further claims that the collection fee was not authorized by the plaintiff’s agreement with his creditor and was illegal under the FDCPA.