FDPCA Class Action Filed Against MRS BPO, LLC

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A Wisconsin consumer claims in a proposed class action that New Jersey-based MRS BPO, LLC (MRS) ran afoul of the Fair Debt Collection Practices Act (FDPCA) in a collection notice it sent over an obligation owed to Chase Bank. According to the lawsuit, the collection notice in question “contains confusing and misleading statements regarding the consequences of paying or settling the debt.”

In language ostensibly presenting the plaintiff with options with which she could settle her debt to “avoid further collection activity,” the defendant allegedly failed to make clear whether “Option 1” or “Option 2” would actually settle the full balance owed or merely stop additional collection activity. From here, the case details what, specifically, muddies the situation:

“Upon information and belief, the relationship between MRS and Chase is a non-agent, independent contractor relationship. MRS is a sizable player in the debt collection market and is not affiliated with Chase beyond debt collection. Chase does not exercise the type of control over MRS that would establish an agency relationship,” court papers say.

At issue is whether the defendant may be attempting a switch-up in which, despite the purported settlement of the debt, Chase could apparently continue its collection efforts:

“Under a reasonable interpretation of [evidence attached to the complaint], payment of the amounts listed in ‘Option 1’ or ‘Option 2’ would result in MRS closing its account and returning the remaining balance to Chase, which would be within its rights to continue its own collection efforts, or to hire another collection agency, or to sell the remaining balance to a debt buyer.”