By Emily Sortor  |  July 13, 2018

Category: Consumer News

A consumer has filed a lawsuit claiming that Phoenix Financial Services has violated Indiana debt collection laws in its methods of contacting her.

Plaintiff Roberta C. claims that she suffers declining health, which prevented her from working and caused her to fall behind on bills, including a medical bill originally owed to Emergency Physicians Medical Group of Indiana, PC. She claims that this debt was then sold to Phoenix Financial Services, an Indiana-based debt collection company.

Roberta states that Phoenix Financial Services contacted her to collect the debt in ways that violated Indiana debt collection law.

Around Dec. 8, 2017, Roberta says she received a letter from Phoenix Financial Services regarding her medical bill. She claims that the letter contained a “G notice,” which was notice informing her that her debt had been transferred to the company, as well as a request for immediate payment. The request came along with instructions to detach the bottom portion of the letter and return it with immediate payment to the company.

She claims that she was worried by the letter, because it was the first contact that Roberta had with Phoenix Financial Services, as she had done no previous business with the company. After receiving the letter, she contacted her lawyers for advice on how to proceed.

Debt Collection Laws

Roberta claims that she was misled by the letter, and that the inclusion of an assertion that the debt required immediate payment, along with the G notice, was in violation of the Fair Debt Collection Practices Act (FDCPA) and Indiana debt collection laws. Allegedly, a G notice–the notice that a debt has been transferred–should be sent in advance of a request for immediate payment.

Roberta claims that the Indiana laws require debt collection agencies like Phoenix Financial Services to give consumers at least thirty days to contact the company and contest the debt, thus requiring that they verify that the debt is valid. Allegedly, Phoenix Financial Services did not give Roberta this opportunity or notify her of this right, and only claimed that she was required to immediately pay the debt.

Roberta claims that Phoenix Financial Service’s attempt to convince her that she was required to immediately pay the debt was in violation of Indiana debt collection law, which prohibits companies from using “false, deceptive, or misleading representations” to collect a debt.

The Phoenix Financial Services lawsuit claims that “by demanding immediate payment from [Roberta] within the Collection Letter, [the company’s] collection activity was inconsistent with, and overshadowed [Roberta’s] rights.”

The unfair debt collection lawsuit claims that Phoenix Financial Services willfully and knowingly violated state and federal law by contacting Roberta in the manner that they did. The Indiana debt collection lawsuit claims that as the company has been in the debt collection business for years, they should be well aware of state and federal debt collection laws.

The Phoenix Financial Services Debt Collection Law Violation Lawsuit is Case No. 1:18-cv-01844-TWP-DLP, in the U.S. District Court for the Southern District of Indiana, Indianapolis Division.

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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.

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6 thoughts onLawsuit Claims Phoenix Financial Services Violated Indiana Debt Collection Laws

  1. Tammy Dickson says:

    Due to relentless harassment I set up payments with this company. Add me.

  2. Lynette McEndarfer says:

    Phoenix Financial has harassed me by phone and by mail for a supposed $35 invoice that I owe from 2018, which I do not owe. I have told them several times via phone. They continue to harass and even recently submitted it to my credit report. Asinine. I do not owe this and I’m not paying something I do not owe. The man who called me said, and I quote, “It’s only $35, just pay it. It’s not that much.” Seriously? I wonder how many thousands of people pay it to keep from getting harassed. I pray this fraudulent company goes under.

  3. Kalyn H says:

    I’ve been getting calls from them for a bill for $39.99 which is not what my co pay is from my hospital. The first phone call they didn’t even have my home address but had my last 4 of my social security number and then stated my first 3 which is definitely against the law. Now I am spammed with 6 calls a day by this company no matter how many times I’ve flat out said go ahead and drop it on my credit report I have nothing. My credit score is perfect, nothing negative, and just a growing irritation that this company has my social security number

  4. Brad Lucas says:

    I deal with these guys daily calls 6 times all from different out of state numbers and does nothing but threaten. Have asked 3 times for proof and nothing is ever sent. What gives

  5. J Harr says:

    My son is going through similar nonsense with this “company”. He’s never had any prior contact from them, he doesn’t even recall getting unpaid services as he’s always had insurance.

  6. Patty Kimble Reed says:

    Add me.

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