Franklin Collection Service Hit with FDCPA Suit in Wisconsin

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Franklin Collection Service, Inc. is on the receiving end of a proposed class action lawsuit alleging violations of the Fair Debt Collection Practices Act (FDCPA) and Wisconsin state law.

The plaintiff, a Wisconsin woman, claims she received a collection letter from the defendant stating, in part: “This collection agency is licensed by the Division of Banking in the Wisconsin Department of Financial Institutions.” The suit argues that the defendant does not, in fact, possess a collection agency license in the state of Wisconsin and that this language was included in the letter to falsely inflate the defendant’s “legitimacy and power to collect the debt.”

The lawsuit takes further issue with the following statement in the letter:

“IF YOU ARE NOT PAYING THIS ACCOUNT, CONTACT YOUR ATTORNEY REGARDING OUR POTENTIAL REMEDIES, AND YOUR DEFENSES, OR CALL (888) 215-8961.”

The complaint describes this sentence as a “threat of imminent legal action” that the defendant does not intend to take, which the case claims is illegal under the FDCPA.

The suit also highlights the defendant’s instruction to call its phone number, arguing that this demand for oral communication overshadows the letter's validation notice, which informs consumers that disputes must be made in writing. According to the complaint, “[a]n oral dispute does not trigger the FDCPA verification requirements, which includes a temporary suspension of collection efforts until verification is provided.” The unsophisticated consumer may be led to believe that he or she can call the phone number provided to dispute the debt and unknowingly forfeit FDCPA protections, the suit says.