Woman Files Lawsuit Under FDCPA and Wisconsin Debt Collection State Laws

A Wisconsin resident has filed a lawsuit against Nationwide Credit & Collection, alleging that the company engaged in illegal debt collection practices under both the FDCDPA and Wisconsin debt collection state laws.

The plaintiff, Cynthia G., received physical therapy services from Athletico Physical Therapy in November 2017. According to her lawsuit, she was not required to pay for these services immediately, and it was instead deferred and billed to her later. She says the way the situation was handled violated Wisconsin debt collection state laws. 

She later received a debt collection letter from Nationwide Credit & Collection on April 26, 2018, over an alleged debt of $55.45 with Athletico Physical Therapy.

However, according to Cynthia’s lawsuit, the debt collection letter is presented in a “confusing and misleading manner,” violating both federal and Wisconsin debt collection state laws.

Indeed, Cynthia’s lawsuit notes that the letter says in one place that it is referring specifically to the alleged $55.45 debt, but elsewhere that it may attempt to collect “additional accounts.” It also allegedly states that the “Total Amount” it is collecting is $55,45, but that the amount “may include other accounts not listed above”—suggesting that $55.45 may not, in fact, be the total amount due.

Ultimately, she claims, this letter was extremely confusing, leaving her unclear as to what exactly Nationwide Credit & Collection was actually attempting to collect.

Cynthia filed her debt collection lawsuit on June 26, 2018, in the U.S. District Court for the Eastern District of Wisconsin.

The Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a set of debt collection regulations meant to help protect consumers from being taken advantage of, harassed, or threatened by a debt collection agency. The FDCPA was first enacted by Congress in 1978.

In recent years, collection agencies have become more and more aggressive, and many of these companies may work for major banks, credit card companies, and student loan companies, as well as debt buyers. In some cases, the companies may use illegal debt collection practices to collect on what’s owed them—or even an invalid debt. Indeed, millions of Americans may have been targeted with illegal and abusive debt collection practices, but most are not armed with the information necessary to know there are laws in place protecting them from such abuses.

Laws at both the federal and state level protect Americans from abusive debt collection practices. Debt collectors are not allowed to send confusing collection letters, make threats, harass, add fees, make robo-calls, or communicate with third parties about a debt, among others.

Under the FDCPA, if a debt collector is found to have violated these regulations, the consumer may be entitled to statutory damages of $1,000, plus any actual or emotional damages. A violation of Wisconsin debt collection state laws cound entitle this plaintiff to recovery.

Filing an FDCPA Lawsuit

This investigation is seeing claimants across the nation, especially residents of Illinois, Indiana, and Wisconsin. If you have suffered from abusive debt collection practices like confusing letters, harassment, or others, you may be able to file a lawsuit under federal and/or state debt collection laws.

The Wisconsin Debt Collection Lawsuit is Case No. 2:18-cv-00970-NJ, in the U.S. District Court for the Milwaukee Division of the Eastern District of Wisconsin.

Join a Free Unfair Collection Practices Class Action Lawsuit Investigation

If you’ve been hit with 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.