Agency Sued for Withdrawing Payment Nine Days Early

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DISCLAIMER: This article is based on a complaint. The defendant has not responded to the complaint to present its side of the case. The claims mentioned are accusations and should be considered as such until and unless proven otherwise.

A collection agency is being sued for violating the Fair Debt Collection Practices Act and Regulation F because it allegedly withdrew the plaintiff’s payment nine days before it was scheduled to do so.

A copy of the complaint, filed in the District Court for the District of Colorado, can be accessed using case number 22-02276.

Background: The plaintiff incurred several medical debts, to the tune of $27,561 that was owed. Unable to pay the debts “due to unforeseen financial difficulty,” the accounts were placed with the defendant. In November 2021, the defendant contacted the plaintiff and both sides agreed to a payment arrangement where the defendant would withdraw $50 from the plaintiff’s bank account on the 11th of every month. After making withdrawals in November, December, and January on the 11th, the defendant allegedly made February’s withdrawal nine days early.

The plaintiff called the defendant and the representative was unable to provide an explanation why the withdrawal was made before the scheduled date. The representative offered to allow the plaintiff to call every month to make his payments instead. The plaintiff asked to speak with a manager, and when the representative transferred the call, it was disconnected. The plaintiff called back, and the call went to voicemail, according to the complaint.

It was at this point that the plaintiff contacted an attorney and retained counsel, which led to the lawsuit in question.

Alleged Violations: The complaint accuses the defendant of violating Section 1692e and 1692e(10) of the FDCPA and Section 1006.22 of Regulation F for using unfair and unconscionable means to collect or attempt to collect any debt.

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