Lawsuit Claims Atlantic Credit & Finance Made Recurring Withdrawals Without Proper Authorization

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Atlantic Credit & Finance, Inc. finds itself as the defendant in a proposed class action in which the plaintiff claims the company overstepped federal debt collection law. The complaint states that during a 2016 phone conversation, the plaintiff gave the defendant permission to withdraw $50 from her checking account every two weeks toward payment of a balance owed for veterinarian bills. The lawsuit claims, however, that Atlantic Credit & Finance failed to obtain written authorization to make recurring electronic transfers from the plaintiff’s account as required by the Fair Debt Collection Practices Act (FDCPA). More specifically, the complaint alleges the defendant’s conduct runs contrary to the FDCPA provision that prohibits a debt collector from accepting a check or other “payment instrument” from a consumer postdated by more than five days unless the consumer is notified in writing of the company’s “intent to deposit such check or instrument not more than 10 nor less than three business days prior to such deposit.”

 “[The defendant] notified [the plaintiff] that the ‘payment will be processed against your account’ more than 10 business days prior to depositing the ACH or electronic funds payment instrument,” the complaint reads. “Upon information and belief, [the defendant] sent [the plaintiff] prior letters regarding prior ACH or other electronic transfers from her account that did not provide 10 or fewer business days’ notice prior to deposit.”