Lawsuit Accuses Debt Collector Of Unfair Practices

A debt collection agency is denying allegations that it violated federal law when it convinced a Sioux Falls man to settle a debt that was outside the statute of limitations for filing legal action.

In his lawsuit against Credico, which does business as Credit Collections Bureau, Eric Stowell claims he was contacted by the collection agency in June to settle medical debt that he incurred in 2008 and 2009. In one call, a CCB bill collector told Stowell that his bill had been turned over to the legal department and intimated that legal action was forthcoming.

On that call, Stowell agreed to settle the debt and paid with a credit card, according to his lawsuit. But he later discovered that the debt was outside the statute of limitation and that CCB could not have brought legal action.

“At no time did defendant disclose to plaintiff that the debt was outside the statute of limitations for defendant to take legal action to collect,” Stowell’s lawsuit says.

In its response, CCB admits that the debt was paid “by agreement of the parties, and denies plaintiff’s remaining characterizations of the call.”

Stowell’s complaint contends that CCB violated the federal Fair Debt Collection Practices Act, which bars debt collectors from abusing or misleading consumers.

Stowell’s complaint was filed in federal court.

 
Source: Lawsuit Accuses Debt Collector Of Unfair Practices