States Recovery Systems Inc. Faces Man’s Fair Debt Collection Lawsuit in Wisconsin Court

States Recovery Systems Inc. faces a fair debt collection lawsuit over allegations that the company violated the Fair Debt Collection Practices Act (FDCPA).

Plaintiff Kenneth B. filed the fair debt collection lawsuit in Wisconsin federal court. The lawsuit was filed on May 29, 2018.

According to the fair debt collection lawsuit, Kenneth is a resident of Rock County in the State of Wisconsin. He says that he received a letter from States Recovery in February 2018. The letter, he says, provided three payment options.

One option provided that he could pay 90 percent of the total amount that he owed to the company, which was to be split into six monthly payment arrangements. However, the amount that he owed was not divisible by six, he says. Therefore, the company would in actuality have him pay more than he owed.

According to the fair debt collection lawsuit, “The letter does not indicate to … [Kenneth] that he would be overpaying if he accepted the second option.”

“The letter does not provide for a different amount for the last payment in order to ensure that … [Kenneth] did not overpay …” the amount owed, the fair debt collection lawsuit states. “Pursuant to the FDCPA, consumers have a right to receive truthful collection letters that do not contain false statements, “the lawsuit reads.

The Fair Debt Collection Lawsuit was filed on a count of the Violation of the Fair Debt Collection Practices Act.

Overview: Filing a Fair Debt Collection Lawsuit

The Fair Debt Collection Practices Act (FDCPA) applies strict guidelines and rules that must be followed and abided by debt collectors, debt collection law firms, and debt buying agencies. The FDCPA was passed by Congress on Sept. 20, 1970, and became effective six months thereafter. The FDCPA defines a debt collector as an entity or individual who is in the process of pursuing payments of debts owed by businesses or individuals.

In formulating the Act, Congress addressed the reasons for its enactment by stating that “There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to the invasion of individual privacy.”

The FDCPA helps protect consumers against unfair, abusive, and deceptive debt collection practices. Some of the actions prohibited by debt collectors may include some of the following:

• Harassment
• Making threats
• Calling at inconvenient times of the day, or calling too often
• Adding collection charges and fees to your debt
• Sending confusing letters
• Communicating with 3^rd parties about your debt
• Making robo-calls
• Collecting on old debts

A consumer who believes a debt collector may have violated FDCPA regulations and have made misleading representations in the debt collection process are eligible to file an FDCPA lawsuit and sue a debt collector in court.

The Fair Debt Collection Lawsuit is Case No. 3:18-cv-00410-slc, in the U.S. District Court for the Western District of Wisconsin.

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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.