Class-Action Suit Filed Against Collection Agency

A class-action lawsuit has been filed against a debt collector, accusing it of making it look like the collector purchased debts from a healthcare provider when it had not done so and for violating a state collection law in Colorado.

A copy of the complaint in the case of Zachary Waite and Cathy Wood-Sullivan v. Credit Service Company can be accessed by clicking here.

The defendant is accused of violating the Colorado Fair Debt Collection Practices Act by not including the required documents when initiating collection lawsuits against consumers, and by filing lawsuits against consumers in its name, when it is not the injured party. Doing so indicates that the defendant is, in fact, a debt buyer, and not a collection agency, according to the complaint. If the defendant is not a debt buyer, then it is engaging in the unauthorized practice of law because it is providing legal services and advice to the healthcare provider, which is a false and deceptive practice, according to the plaintiff.

The defendant provided the following statement to a news outlet in Denver after it was contacted about the lawsuit:

The allegations made against Credit Service Company in the lawsuit are factually incorrect and contrary to well established Colorado case law. Every step taken by CSC is in accordance with the law that applies to our profession and is under the auspices of qualified attorneys. Many of the allegations are just plain wrong; the legal conclusions are all clearly in error.

The Plaintiff’s incorrectly allege that CSC is a medical-debt purchaser. It is not. We act as an assignee to many service providers that are owed money and need help with collections.

CSC believes this lawsuit is frivolous; we have been a compassionate, empathetic, and ethical debt collector for more than 70 years. We expect the Court to dismiss this action and allow us to continue to serve our communities.

Given CSC’s long track record of more than complying with State and Federal debt collection laws, we are surprised that we are the target of this suit.

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