Wisconsin Man Alleges FDCPA Violations in Medical Debt Collection Letters

Debt collection company Americollect Inc. is facing a new Federal Debt Collection Practices Act (FDCPA) lawsuit, which was recently filed by a man from Wisconsin alleging the company kept calling him over medical debt collection.

The man alleges that while the company was conducting its medical debt collection attempts, they had violated federal and state debt collection policies. Plaintiff Robert F. claims the attempted medical debt collection tactics were meant to harass and intimidate him, which is illegal under the FDCPA and Wisconsin state debt collection laws.

According to the FDCPA lawsuit, Robert had received a medical debt collection letter from Americollect that described an alleged debt that occurred due to personal medical services with an agreement to defer payment. Another letter was reportedly sent on Jan. 24, 2018, regarding the same debt and stated the debt account balance was $1,185.90.

However in an earlier statement dated July 5, 2017, Robert says the debt account balance was $1,154.64 that was incurred due to medical services. The medical debt collection letters in question had different total amounts due, due to additional interest and any additional services the creditor may have provided, Robert claims.

Neither medical debt collection letter had any provisions or sections that mentioned any interest that may increase the total amount, Robert claims, nor did the letters provide any other explanations to why the debt was increasing.

Robert argues that when the amount of a debt varies between different time spans, the debt collection letters should provide explanations for these differences.

Overview of FDCPA Violations

He claims these medical debt collection letters allegedly violate the FDCPA, by sending allegedly confusing debt collection letters that could have misrepresented the amount owed.

The FDCPA was established by Congress in 1978 to help combat unfair debt collection practices conducted by many companies, which continues to be a problem in the United States. While debt collecting is legal, the FDCPA established policies to help enable consumers to consent any debts that did not belong to them.

The FDCPA also holds debt collectors liable for any unfair treatment of debtors, including using harassment or abusive language to intimidate them into paying. Other unfair debt collection practices prohibited by the FDCPA include:

• Trying to Collect on Debts not Owed
• Trying to Collect on Expired Debts
• Making Improper Reports to Credit Reporting Agencies
• Failing to Cease Communication upon Request
• Improperly Communicating with Third Parties

Debt collectors can face up to $1,000 per violation under the FDCPA if willful intent can be proven.

Robert also claims these medical debt collection letters also violate the Wisconsin Consumer Act (WCA), which was enacted to help state residents combat unfair and deceptive business practices. This includes sending debt collection letters that are specifically written and designed to confuse and intimidate the recipients into paying the alleged debt.

When consumers are pushed into this position, they may not have time to properly review the debt to determine its validity or if the total amount due matches up to what they were told before.

Robert alleges that Americollect failed to adhere to both the FDCPA and Wisconsin state policies when sending the medical debt collection letters, and that he has therefore been forced to file legal action.

This Medical Debt Collection Lawsuit is Case No.: 18-cv-798, in the U.S. District Court of Eastern Wisconsin, Milwaukee Division.

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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.