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State Collection Service Faces FDCPA Lawsuit

State Collection Service, Inc. is facing a proposed class action lawsuit alleging that it did not clearly communicate the full amount of consumers’ alleged debts as required under the Fair Debt Collection Practices Act. The three plaintiffs claim the debt collector sent them letters that specified an “amount” due to their creditors for medical services. According to the complaint, the letters also contained the following statements: “You may have more than one account in our office that is the subject of your payment arrangement. There may be other accounts in another department in our office.” The suit argues that this language was confusing to the plaintiffs because the “amount” specified in the letters may not be the total balance due to State Collection Service. “The unsophisticated consumer would have no idea whether payment of the ‘Account Balance,’ ‘Total Amount Due,’ or ‘Amount’ would satisfy their debt with SCS,” the suit says.

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