Financial Control Solutions Facing Class Action Over ‘Misleading’ Collection Letter

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Falls Collection Service Inc. (which does business as Financial Control Solutions) is on the receiving end of a proposed class action that claims it sent a misleading collection letter to two Wisconsin consumers. The letter allegedly listed a “Balance Due” of $1285.80 under account number 10289B, but also contained an itemization of the balance in which it broke down the total into $879 for the 10289B account and $406.80 for a different account number. The suit argues that the two account numbers would cause the unsophisticated consumer to be confused as to whether the total balance included both accounts.

According to the complaint, the collection letter also informs the plaintiffs that the defendant will charge a $35 fee for returned checks. Under Wisconsin state law, however, debt collectors may only demand from the consumer “actual charges assessed by a financial institution,” the suit says, adding that “no financial institution imposes a charge of $35.00 or greater” for each returned check.