Indiana Woman Files Disputed Debt Lawsuit over FDCPA Violations

A woman filed a disputed debt lawsuit against a debt collection company, MediCredit, Inc., over allegations that the company violated the Fair Debt Collection Practices Act (FDCPA).

Plaintiff Andrea F. filed the disputed debt lawsuit in Indiana federal court. The lawsuit was filed on Aug. 23, 2018.

According to the disputed debt lawsuit, Medicredit attempted to collect on a debt that went into default.

However, Andrea says that she disputed the debt and requested Medicredit to cease all further communication with her. Following her request, she obtained legal representation.

Medicredit allegedly reported to a credit reporting agency, Experian, that Andrea still owed on the debt without explicitly stating that the debt was in dispute — an alleged violation of the FDCPA, the disputed debt lawsuit states.

“By failing to communicate that the debt at issue was disputed, Defendant violated the FDCPA,” alleges the complaint.

The disputed debt lawsuit was filed on a count of violation of the FDCPA.

Overview: Disputed Debt and the FDCPA

The Fair Debt Collection Practices Act (FDCPA) is a federal law that provides limitations on what a debt collector can do or say when it comes to collecting on a debt. The Act also covers how the collection of debt must be reported in credit reports. In addition to FDCPA regulations and laws, state laws are also in place to provide consumer protection.

The FDCA, however, is a federal law. It governs all debt collection practices in the United States and prohibits companies from acting in unfair, deceptive, and abusive ways. The FDCPA covers medical debts, credit cards, mortgages, and other debts such as from family, personal, or household. However, one thing that the FDCPA does not cover are business debts.

Types of debt collectors may include lawyers who collect debts as part of their business, collection agencies, and debt buyers. It also includes companies that buy businesses or creditors’ past-due debts and then attempt to retrieve and collect on them.

There are many limitations set on debt collectors when they do attempt to collect on a debt. Some of these limitations include:

• Time and place. Most often, debt collectors are prohibited from contacting you either prior to 8 a.m. or after 9 p.m. They are prohibited from contacting a debtor at an unusual time or at an inappropriate location such as work.
• Debt collectors are prohibited from harassing you or anyone you know in an attempt to collect on a debt.
• Attorney representation. Once a debtor obtains an attorney to represent them and a debt collector becomes aware of this, the debt collector is prohibited from making any contact with the debtor and must contact their legal representation instead.

Unfortunately, many have become victims of FDCPA violations. However, recoveries may be obtained through the filing of a disputed debt lawsuit. Some recoveries can be obtained for damages such as stress-related heart problems, emotional distress, wage garnishment, and lost wages. Statutory damages of $1,000 may also be obtained.

The Disputed Debt Lawsuit is Case No. 1:18-cv-02604-JMS-TAB, in the U.S. District Court for the Southern District of Indiana, Indianapolis Division.

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).

Get a Free Case Evaluation Now

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.