FDCPA Lawsuit Alleges Collections Agency in Error

The Fair Debt Collection Practices Act (FDCPA) is a federal law that allows consumers to fight back against debt collection abuse.

Under the FDCPA, a consumer may file a debt collection abuse lawsuit against debt collectors who allegedly violate the law. That is what Wisconsin plaintiff Marjorie Tylke has done in a lawsuit that alleges Alliance Collection Agency has been trying to illegally collect a debt from her.

Tylke’s situation started when she went to the hospital, and made a payment arrangement with the health care provider, according to the debt collection lawsuit. However, in October 2013, Alliance sent Tylke a letter saying that she may owe interest and late charges. Her FDCPA lawsuit alleges that the debt collection notice is in error and that the collector has no right to charge interest.

This FDCPA lawsuit also states that the company failed to break down her balance. A 2004 FDCPA lawsuit established a precedent that debt collectors are legally obligated under the FDCPA to explain how much of the debt is principal and how much is interest, as this could make it harder for consumers to establish the legitimacy of a debt. Specifically, the court ruled that “it is unfair to consumers under the FDCPA to hide the true character of the debt, thereby impairing their ability to knowledgeably assess the validity of the debt.”

Under the FDCPA, a plaintiff like Tylke can pursue a lawsuit to recover actual losses caused by alleged harassment as well as statutory damages, or a certain amount of money prescribed by law. The FDCPA allows plaintiffs to seek up to $1,000 in statutory damages. On top of this, the FDCPA allows plaintiffs to try to collect court costs and attorney fees, reducing the financial burden on the party filing the FDPCA lawsuit.

The FDCPA has allowed consumers like Tylke to fight back against debt collector harassment by establishing clear laws and expectations for debt collectors. This includes barring them from calling a person at work if the person tells them not to, and creating protocols to dispute a debt if the debt is in error.

The FDCPA Lawsuit is Marjorie Tylke, et al. v. Alliance Collection Agencies Inc., Case No. 1259, in the U.S. District Court for the Eastern District of Wisconsin, Milwaukee Division.

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.