Woman Challenges Alleged Violations of Indiana Debt Collection Laws

An Indiana woman recently filed a lawsuit against IMC Credit Services, alleging the debt collection company attempted to collect on a debt that fell outside the applicable statute of limitations and violated Indiana debt collection laws as well as the FDCPA.

The plaintiff, Candy S., alleges that in the summer of 2018, when she was doing a routine check into her credit report, she noticed an entry that she didn’t recognize. The entry was attached to IMC Credit Services, and was reporting on an account she didn’t recognize as hers.

When she contacted IMC about the issue in July 2018, she alleges, the company informed her that it was collecting on a medical debt of $899.10 from July 8, 2012. The update to the credit report with this entry was dated July 13, 2018. According to her lawsuit, the statute of limitations for this kind of debt collection is six years, and so the attempt to collect on this debt was actually a violation.

On top of this violation, IMC Credit Services didn’t inform Candy that the debt was time-barred, and didn’t explain that acknowledging that debt as valid would essentially reset the statute of limitations, and she could be held accountable for the debt.

The lawsuit alleges that IMC actively misled Candy about proper debt collection practices under the FDCPA and Indiana debt collection laws. Under the FDCPA, “a debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt.”

But Candy claims that IMC deceptively presented her debt to her as something she must pay as soon as possible to avoid being sued. Indiana debt collection laws note that this kind of deception is prohibited whether it’s implicit or explicit.

Candy filed her lawsuit over violation of both the FDCPA and Indiana debt collection laws on Sept. 7, 2018, in the U.S. District Court for the Southern District of Indiana.

The Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a set of debt collection regulations meant to help protect consumers from being taken advantage of, harassed, or threatened by a debt collection agency. The FDCPA was first enacted by Congress in 1978.

In recent years, collection agencies have become more and more aggressive, and many of these companies may work for major banks, credit card companies and student loan companies, as well as debt buyers. In some cases, the companies may use illegal debt collection practices to collect on what’s owed them—or even an invalid or previously discharged debt.

Indeed, millions of Americans may have been targeted with illegal and abusive debt collection practices, but most are not armed with the information necessary to know there are laws in place protecting them from such abuses.

Laws at both the federal and state level protect Americans from abusive debt collection practices. Debt collectors are not allowed to send confusing collection letters, make threats, harass, add fees, make robocalls or communicate with third parties about a debt, among others.

Under the FDCPA, if a debt collector is found to have violated these regulations, the consumer is entitled to statutory damages of $1,000, plus any actual or emotional damages.

Filing an FDCPA Lawsuit

If you have suffered from abusive debt collection practices like confusing letters, harassment, or others, or if you have been targeted with unfair attempts at debt collection, you may be able to file a lawsuit under under Indiana debt collection laws, other state laws or the FDCPA.

The Indiana Debt Collection FDCPA Lawsuit is Case No. 2:18-cv-00396-RLM-MJD, in the U.S. District Court for the Terre Haute Division of the Southern District of Indiana.

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).

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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.