Consumer Claims Debt Collector Violated FDCPA and Indiana Fair Debt Collection Laws

A consumer recently filed a debt collection lawsuit against Choice Recovery, alleging that the debt collector violated the FDCPA and Indiana fair debt collection laws.

Plaintiff Kimberly B. recently filed a lawsuit against Choice Recovery Inc., claiming that the company violated the FDCPA and Indiana fair debt collection laws by attempting to collect on a old debt.

According to Kimberly’s complaint, in May 2018 she noticed a new entry on her credit report from Choice Recovery which had been added that month. She then called the defendant to inquire about the debt and why it had shown up on her credit report.

A Choice representative allegedly told her that she had a $585 balance from a medical bill which had gone into delinquency in July 2011. Kimberly claims the representative then attempted to collect payment for the debt during the phone call. Confused, Kimberly says she later spoke with her attorneys regarding her legal rights in the situation.

Kimberly claims that the debt collection attempt was in violation of Indiana fair debt collection laws and the FDCPA because it was a debt older than six years. Indiana fair debt collection laws allegedly state “An action upon promissory notes, bills of exchange, or other written contracts for the payment of money executed after August 31, 1982, must be commenced within six (6) years after the cause of action accrues.”

Kimberly argues that, by trying to collect on a debt older than six years, Choice Recovery violated Indiana fair debt collection laws.

The lawsuit also argues that the Choice representative did not inform Kimberly of her rights regarding a “time-barred” debt. For example, the representative did not tell her that if she paid or agreed to pay the debt, she could reset the statute of limitations on the debt, subjecting her to further liability.

The representative also allegedly failed to tell her that Choice could not sue her for the debt due to the account being time-barred.

By failing to disclose this pertinent information, Choice Recovery allegedly violated the FDCPA. The FDCPA prohibits the use of “false representation or deceptive means to collect or attempt to collect any debt.”

Kimberly claims that omitting vital information constitutes deceptive means under the FDCPA. Indiana fair debt collection laws also prohibit such behavior, deeming it a “willful deceptive act.”

“Such omissions served only to confuse and intimidate Plaintiff with hopes that she waived her rights and affirmative defenses under the law,” the FDCPA lawsuit states. By bringing her lawsuit under the FDCPA and Indiana fair debt collection laws, Kimberly hopes to resolve the debt issue and prevent any further violations of state and federal laws.

“[Kimberly] justifiably fears that, absent this Court’s intervention, Defendant will continue to attempt to collect payment from her using abusive, deceptive and unlawful means, and ultimately cause her unwarranted economic harm,” the lawsuit states.

Kimberly seeks actual damages, statutory FDCPA damages of $1,000, statutory damages under Indiana fair debt collection laws, court cost and attorneys’ fees.

The Indiana FDCPA Lawsuit is Case No. 1:18-cv-01934-WTL-MJD in the United States District Court for the Southern District of Indiana.

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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.