Lawsuit: Mercantile Adjustment Bureau Unlawfully References IRS

New to ClassAction.org? Read our Newswire Disclaimer

Mercantile Adjustment Bureau, LLC is the defendant in a proposed class action lawsuit filed in Pennsylvania federal court. The plaintiff claims the debt collector sent her a collection letter that contained a settlement offer and a statement informing her that any debt forgiveness exceeding $600 could be reportable to the IRS. According to the complaint:

“Under prevailing IRS regulations, settlement of the Plaintiffs debt would never be reported to the IRS. Defendant's statement is therefore both false and misleading, in violation of the FDCPA.”

The suit claims Mercantile Adjustment Bureau’s collection practices are unlawful because the company “needlessly injects” IRS statements into collection letters to threaten consumers into paying off the full amount of their alleged debts instead of accepting settlements.