FMS, Inc. Hit with FDCPA Class Action

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A proposed class action alleging violations of the Fair Debt Collection Practices Act (FDCPA) has been filed against FMS, Inc. Filed in Wisconsin, the lawsuit claims the defendant sent two collection letters to the plaintiff over the same debt that each identified two different entities as the creditor and current creditor. The second letter the plaintiff received, the lawsuit states, claimed the original creditor was Capital One N.A., but listed Kohl’s Dept Stores and then Capital One N.A. as the creditor and current creditor, respectively.

Under the FDCPA, debt collection companies cannot produce statements in letters that may be confusing to the unsophisticated consumer. In this situation, the lawsuit argues, the defendant’s misrepresentation of the creditor’s identity may cause the unsophisticated consumer to be unsure as to which listed creditor actually has the authority to settle a debt.