Southwest Credit Systems Accused of Charging Illegal Fees

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Southwest Credit Systems, L.P. is on the receiving end of a proposed class action lawsuit that claims it violated the Fair Debt Collection Practices Act (FDCPA) by attempting to charge an illegal fee in a consumer’s collection letter. The plaintiff claims she received a letter from Southwest Credit Systems that listed a “collection fee” of $70.99 that was not authorized by her creditor. The FDCPA prohibits debt collectors from “attempting collection of any amount unless such amount is expressly authorized by the agreement creating the debt or permitted by law,” according to the complaint.

The plaintiff claims the letter also contained a settlement offer and stated that it was only valid “within 45 days of receiving [the] letter.” The suit argues that this statement is unlawful because the offer may be accepted at any time. The defendant included the false deadline in an attempt to induce the consumer into paying off the debt as soon as possible, the complaint alleges.