Two Separate Law Firms File FDCPA Class Actions Against Nationwide Credit

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Nationwide Credit, Inc. is the defendant in two proposed class actions filed in New York that allege the company violated the Fair Debt Collection Practices Act (FDCPA) in the course of its conduct with consumers.

The first lawsuit alleges Nationwide Credit unlawfully claimed that the plaintiff’s charged-off American Express credit card debt was “subject to timing and system limitations.” The complaint, however, argues the plaintiff’s debt, since it was charged-off, is not subject to any change, nor will it increase due to any terms of the original agreement governing the debt. According to the lawsuit, this is an instance of Nationwide Credit attempting to employ a tactic to subtly press the least sophisticated consumer, i.e. the plaintiff, into paying the account quickly, so as to avoid accruing non-existent fees.

The second proposed class action claims Nationwide Credit violated the terms of the FDCPA by failing to clearly and explicitly identify in a collection notice the name of the original creditor to whom the plaintiff’s debt was owed. Instead of concisely stating the original creditor, the defendant allegedly merely noted “Re: Chase Bank USA, N.A.” in the notice without indicating the current and original creditor.

First Complaint

Second Complaint