IO, Inc. Accused of Demanding Unauthorized Debt Collection Fee

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A proposed class action has been filed in Virginia against IO, Inc. over alleged violations of federal debt collection law. The suit accuses the defendant – which trades under the names Receivables Systems, Inc. and Receivables Management Systems – of demanding a $20.00 “collection fee” from the plaintiff when the man’s creditor did not expressly authorize the charge. Alleged Fair Debt Collection Practices Act (FDCPA) abuses aside, the complaint states Virginia law prohibits the collection of such a fee “absent a written contract containing a collection fee provision.”