ERC Accused of Charging Unauthorized ‘Processing Fee’ For Payments Made by Phone

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action has been filed against Enhanced Recovery Company (ERC) over claims that the debt collector charged consumers an unlawful collection fee to pay over the phone. The two plaintiffs in the case say they contacted the defendant to settle their respective accounts and were told that they must pay an additional $12.95 “processing fee” to pay by phone. The suit argues that this extra charge cannot be a processing fee because one of the plaintiffs was able to negotiate the price down to $6.95. According to the complaint, the charge was actually an unauthorized collection fee “in disguise” that the defendant demanded in order to “gain a bit more profit off the collection of the debt.”