Wisconsin Man Claims Collection Associates Failed to Disclose Account’s Accruing Interest

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Collection Associates, Ltd. is on the receiving end of a proposed class action filed in Wisconsin federal court that accuses the debt collector of straying from Fair Debt Collection Practices Act (FDCPA) regulations. The plaintiff in the case claims he received a collection letter (Exhibit A) from the defendant on November 27, 2017, regarding a medical debt purportedly owed to “ANESTHESIOLOGY ASSOC OF WI, S.C.” The letter sought to collect an amount of $36.42, which the suit says represented a greater amount of debt than the balance listed in a previous letter the plaintiff received in July 2016. The difference, the case says, must be due to accruing interest and not any additional services provided by the plaintiff’s creditor.

Despite the higher balance, the notice never explained the reason for the increase, the complaint claims.

Under the FDCPA, the suit continues, a debt collector is obligated to include in its collection letters language informing a debtor that his or her balance may increase due to interest. Absent this language, a consumer such as the plaintiff risks paying the amount in the letter without actually resolving the debt, according to the lawsuit.

“The unsophisticated consumer,” the complaint reads, “would have no way of knowing if the debt was resolved because Exhibits A fails to explain what amount Collection Associates is actually collecting.”