National Credit Management Charged Illegal Collection Fee, Suit Says

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A proposed class action has been filed against National Collection Systems, Inc. (which does business as National Credit Management) over claims that it violated the Fair Debt Collection Practices Act (FDCPA). The plaintiff in the suit says she received a collection letter from the defendant informing her that she owed a “Total Current Balance” of $20.63. Upon requesting verification of the purported debt, the plaintiff allegedly received another letter noting that total was comprised of $16.50 of principal and $4.13 in collection costs. The suit argues that this 25 percent collection fee is illegal, was not authorized by the parties’ contract, and was unlawfully not disclosed in the original collection letters the defendant sent to alleged debtors.