Carson Smithfield Sued Over Debt Collection Violations

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A class action has been filed in Wisconsin against Carson Smithfield claiming the debt collection agency violated the Fair Debt Collection Practices Act (FDCPA) by presenting debtors with allegedly deceptive settlement information. The complaint claims the defendant sent collection letters to the plaintiff and proposed class members that falsely implied a settlement offer would only be valid if payment was made on or before a certain date, effectively making it a “limited time” offer.

The plaintiff argues the defendant had authority from Merrick, who formerly owned the debt, to settle individuals’ debts for 60 percent of the amount owed at any time, not within only a predetermined time period as purported in the collection letters. Such a statement is considered deceptive to the unsophisticated consumer under the FDCPA and seen as a tactic meant to induce a false sense of urgency to the debtor.