Debt Collection Lawsuit Filed Against Alliance Collection Agencies

A Milwaukee resident has filed an unfair debt collection lawsuit against debt collection agency Alliance Collection Agencies for alleged violations of the Fair Debt Collection Practices Act (FDCPA).

The FDCPA lawsuit alleges that the debt collection agency participated in unfair debt collection practices by using false and misleading practices in the attempt to collect a debt.

Plaintiff Marjorie T. alleges in the unfair debt collection lawsuit that Alliance used illegal tactics to collect a medical services debt.

According to the filed Alliance Collection Agencies illegal debt collection lawsuit, Marjorie established a payment arrangement with her healthcare provider to pay for medical services she received.

However, she began receiving collection notices in 2013 from Alliance Collections Agencies that stated she may owe interest and late fees. Her FDCPA lawsuit claims that Alliance’s debt collection letter is in error, and it has no legal right to charge interest or collect the debt.

Marjorie also alleges that Alliance failed to break down her balance in the collection letters, stating that the portion of interest on the balance was omitted.

This violates the federal debt collection law, which says that a debt collector must itemize the various charges, including the interest and principle that compromises the total amount of the debt. Furthermore, Marjorie claims that Alliance Collection Agencies has no legal basis for collecting interest, late charges, or other charges on the alleged medical debt.

What is the Fair Debt Collection Practices Act (FDCPA)?

In 1977, in response to a growing problem with abusive debt collection practices, the federal government enacted the Fair Debt Collection Practices Act. The objective of the FDCPA was to eliminate abusive debt collection practices by penalizing businesses that violated the regulations.

In addition to imposing requirements on debt collectors, the FDCPA prohibited a variety of abusive collection practices, including any communication with a debtor after he or she has retained an attorney, the use of profane or obscene language, misrepresentation and deceit, and incessant calls.

More importantly, the FDCPA gave aggrieved consumers a legal cause-of-action to seek damages in court if the federal law is violated. Under the FDCPA, if a collector is proven to have violated one of the provisions, a consumer need not prove actual damages in order to recover up to $1,000 in damages plus reasonable attorney fees.

Marjorie is seeking all actual and statutory damages for Alliance’s alleged violation of the FDPCA and the Wisconsin Consumer Act as well as all reasonable court costs. She has demanded a jury trial for this case.

The Alliance Collection Agencies FDCPA Lawsuit is Case No. 2:14-cv-01259-CNC, in the U.S. District Court for the Eastern District of Wisconsin, Milwaukee Division.

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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).

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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.