in Newswire Published on October 23, 2017

Lawsuit Claims Mercantile Adjustment Bureau Did Not Disclose ‘Collection Costs’

Last Updated on May 8, 2018

Hernandez v. Mercantile Adjustment Bureau, LLC

Filed: October 17, 2017 ◆§ 2:17-cv-06057

Per a lawsuit, Mercantile Adjustment Bureau sent a notice that failed to disclose allegedly illegal 'collection costs' in excess of $400.

Defendant(s)

Mercantile Adjustment Bureau

Law(s)

Fair Debt Collection Practices Act

State(s)

New York

A New York man’s lawsuit against Mercantile Adjustment Bureau claims the company unlawfully failed to disclose that “collection costs” in excess of $400 were included in his student loan balance stated in a December 2016 notice. From the lawsuit:

“[The defendant’s] addition of collection costs into the debt balance stated in said letter without disclosing to [the plaintiff] that the balance included collection costs and, further, without disclosing the amount of such collection costs, is a violation of the [Fair Debt Collection Practices Act] . . . as a false representation of the amount of the debt and a false representation and deceptive means used by [Mercantile] in its attempt to collect the debt.”

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