EOS CCA Attempted to ‘Coerce’ Consumer into Paying Time-Barred Debt, Lawsuit Says

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Collecto, Inc.—which does business as EOS CCA—is the defendant in a proposed class action that alleges the company attempted to coerce a consumer into paying a time-barred debt.

The lawsuit focuses on what it calls an “intentionally deceptive and confusing letter” sent to the plaintiff in October 2018 concerning a debt incurred on an AT&T account. The case says the letter indicated a debt balance of $238.67 and included a settlement offer of $143.20, stating, in part:

“Be advised this account is a time-barred debt and no legal action may be filed against you.”

By stating that the plaintiff “may” not be sued for the debt, the letter falsely implied that the defendant could change its mind in the future, the case argues. Moreover, the notice supposedly failed to disclose that regardless of the defendant’s promises, the woman could be sued for the full debt amount should the obligation’s statute of limitations be revived and transferred to a new collector.

The suit alleges the letter failed to disclose that “even a partial payment or promise to pay” would restart the statute of limitations on the debt and make the woman vulnerable to a lawsuit.