Lawsuit: Debt Collector Threatens 'False' Deadlines and Fees

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A Wisconsin woman has filed a proposed class action lawsuit against Receivables Performance Management, LLC. She claims the debt collector violated provisions of the Fair Debt Collection Practices Act by imposing a false deadline on her settlement offer and threatening to charge her a “collection fee.” One of the debt collection letters she received allegedly contained the following sentence: “The remaining 40% of your outstanding balance will be forgiven if your payment of $428.05 is received on or before 12-02-16.” The suit argues that the deadline added to the settlement offer is invalid because the offer can be accepted “at any time.” According to the complaint, “the sole purpose of the purported deadline is to impart in the consumer a false sense of urgency.”

The plaintiff also claims that the collection letters she received contained a “collection fee” that was listed as “$0.00.” This reference falsely implies that the defendant has permission to add a collection fee in the future if the plaintiff does not make a payment.

These “false and deceptive tactics” practiced by Receivables Performance are meant to threaten consumers into paying off their alleged debts, the suit argues.