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A Fair Debt Collection Practices Act (FDCPA) lawsuit was filed by a New York resident against debt collection agency CheckRedi of Kentucky LLC.
The FDCPA lawsuit alleges that the debt collection agency participated in unlawful debt collection practices by using misleading and deceptive practices in the attempt to collect a debt.
Plaintiff Melanie Dudley alleges in the CheckRedi lawsuit that CheckRedi made unauthorized withdrawals from her bank account that caused her to incur overdraft fees totaling $140. Dudley claims she never provided her bank account information to CheckRedi and did not consent to CheckRedi to withdraw money from her account. That, the debt collection lawsuit alleges, is a violation of the Electronic Fund Transfer Act (EFTA).
Dudley also claims that CheckRedi failed to send written correspondence regarding her rights to dispute the original debt of $40.02 as well as failed to disclose their identity as a debt collector via phone calls Dudley allegedly received. She asserts that the defendants behaved in a harassing, oppressive, and abusive manner, allegedly in violation of FDCPA guidelines.
What is the Fair Debt Collection Practices Act (FDCPA)?
The FDCPA was passed by Congress in 1978 to combat unfair debt collection practices used by many creditors and debt collectors. Although debt collection is perfectly legal, the FDCPA has established rules for the collection of consumer debts and provides protections for debtors by enabling them to challenge creditors and determine the validity and accuracy of asserted debts.
Despite these debt collection laws, many debt collectors reportedly engage in illegal conduct in an attempt to collect debts. If a debt collector is found to have violated the FDCPA, the debtor is entitled to receive $1,000 in damages, plus any actual damages that they have suffered, for each violation.
What is the Electronic Fund Transfer Act?
The Electronic Fund Transfer Act (EFTA) is a federal law enacted in 1978 to protect consumers when they use electronic means to manage their finances. Electronic fund transfers (EFT) are commonly used to replace the use checks, deposit slips and other paper transactions.
The Electronic Fund Transfer Act, which covers all transactions that can immediately withdraw money from your account, provides requirements for banking institutions as well as consumers. It requires banks to provide certain information to consumers and outlines how consumers can limit liability in the case of a lost or stolen card.
The CheckRedi FDCPA Debt Collection Lawsuit is Melanie Dudley v. CheckRedi of Kentucky LLC, et al., Case No. 1:14-cv-01265 TJM CFH, in the U.S. District Court for the Northern District of New York.
Join a Free Unfair Debt Collection Class Action Lawsuit Investigation
If a lender or debt collector engaged in unfair debt collection practices, you may have a legal claim and could be owed compensation for violations of the Fair Debt Collection Practices Act (FDCPA).
DISCLAIMER: Debt collection itself is not illegal. However, debt collection firms collecting on consumer debts must adhere to the FDCPA. Even though debt attorneys are investigating these companies, their debt collection practices may be legal.
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2 thoughts onFDCPA Lawsuit Filed Against CheckRedi
I was charged $98 in fees by CheckRedi Ky over the holidays. I had two NSF fees in my checking acct from CheckRedi had no idea who they were or for what they were trying to collect. I was never notified by the company either by phone call or by correspondence. Until a week after they had already charged NSF fees from my account. We reported the CheckRedi nsf fees as fraud to our bank institution as there were two nsf fees drawn in the same day for $29 and we had no way of knowing how to even resolve the debt because we didn’t know anything about the institution that had drawn overdraft fees until they finally called 8 days later. My spouse and I have NSF check coverage on our checking account so In most cases the check will clear and we are charged a overdraft fee from our bank institution. Apparently CheckRedi keeps repeatedly trying to send checks through racking up NSF fees and when it does go through you pay the amount of the overdraft and a $25 service fee. I later found after they charged $98 in fees that it was over a $15 check I sent to my child’s school for lunch money. Biggest Scams ever. I would love to see them closed down for good and have to pay settlements to every ripped of consumer they have ever encountered.
This sounds about like they did me but only worse. I agree I did wrong and wrote some bad checks. But I was trying to make it right and was trying to make them a payment of some sort every two weeks where that I could have them paid down. I had just got my bank account straightened out where I could start paying them more. Well on that Friday I called them to make a payment and they told me that they couldn’t hold it up no more but I told them that I had been sick and couldn’t come up with whole amount and they said they was nothing they could do so I ask what happened them they said we will keep them til August something and they would give it to lawyer. I said even thought I’ve made payments toward clearing them. I ask the lady not to send threw my account I just got it fixed she said I’ll note the account. I checked my bank account later and they had sent the checks back threw plus 50.00 to check redi of Kentucky like 6 times. The bank also charges 32.00 per one for insuffienct funds. I understand them sending the bad checks back threw. But sepetate check redi 50.00 per one unarthorized x6 was a rip off that was 192.00 I had to pay the bank for that when I never told them to send there 50.00 fee threw my bank account or they could have added it all up and sent as one. Something needs to be done to this place. Even though I did wrong I think I would have came out cheaper if I would have went to court and paid court cost over the bad checks.