Evergreen Professional Recoveries, Guardian Credit Union Facing FDCPA Lawsuit

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Evergreen Professional Recoveries, Inc. and Guardian Credit Union are defendants in a proposed class action filed by a Wisconsin consumer who claims the parties violated the federal Fair Debt Collection Practices Act (FDCPA) and the Wisconsin Consumer Act. The plaintiff says he took out an auto loan with Guardian Credit Union in January 2016 and by September 2016 had defaulted on his loan, prompting Guardian to repossess and sell the vehicle for approximately 10% of its original cost. Guardian then sent the plaintiff a debt collection letter noting that he still owed a balance of $6,696.40, according to the complaint. Several months later, the suit continues, the plaintiff received an additional collection letter from defendant Evergreen that stated his remaining balance as $6,389.16. The plaintiff claims he was confused by the differing balances in the two letters and “had no idea why the balance had apparently decreased or whether the letter sent by Evergreen was legitimate.”

The suit argues that the defendants violated the FDCPA by failing to clearly communicate the actual balance of the alleged debt and attempting to collect “an incorrect amount” from the plaintiff.

Furthermore, the complaint claims defendant Guardian failed to resell the plaintiff’s vehicle “in a commercially reasonable manner” in violation of the Wisconsin Consumer Act.