LCA Collections Misleading Collection Letter FDCPA Class Action

Bills related to medical diagnoses and treatments often go into default, as consumers can’t plan in advance for their medical expenses. The complaint for this class action alleges that Laboratory Corporation of America, doing business under the name LCA Collections, violated the federal Fair Debt Collections Practices Act (FDCPA) as well as California’s Rosenthal Fair Debt Collection Practices Act (RFDCPA) in overshadowing required information in debt collection letters.

Plaintiff Rebecca Heller allegedly owed a debt to Laboratory Corporation of America. In reference to this debt, she received a letter dated March 6, 2019, from a party called LCA Collections.

The purported company LCA Collections has the same address and telephone number as Laboratory Corporation of America. The complaint alleges that Laboratory Corporation “is improperly using an alias in the collection of the debts in violation of” federal law. This does, however, permit the LCA Collections entity to be treated as a third-party debt collector which is bound by the terms of the FDCPA.

The FDCPA requires that consumers be given certain information either in the first communication from the debt collector or within five days thereof. Among the information that must be given is a notice of the consumer’s validation rights and right to dispute the debt or any part of it. The LCA letter did not contain this information. 

Furthermore, the RFDCPA requires debt collectors to include a specific paragraph of information to consumers in California. The letter did not contain this information either. 

Instead, the letter, which was trying to collect on a debt of $3.12, contained a statement that appeared to negate the right to the thirty-day dispute period. The complaint quotes the letter as saying “if this bill is not satisfied immediately it will be listed as a severely delinquent account and further collection activities will proceed. Your payment is expected today.”

These statements misled Heller about her rights regarding the debt, the complaint says. The FDCPA also forbids debt collectors from misleading consumers in their communications.

The class for this action is all persons in the US who, between January 16, 2019 and January 16, 2020, received collection correspondence from Laboratory Corporation of America that stated that consumers or debtors have less than thirty days to dispute the debt or request validation and that Laboratory Corporation will otherwise assume the debt’s validity, failed to disclose in the first writing the notice requirements of the RFDCPA, used a business name other than the true name of the company, or sought to collect a “Collections Fee” that was not authorized by law or contract.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

LCA Collections Misleading Collection Letter FDCPA Complaint

January 16, 2020

Bills related to medical diagnoses and treatments often go into default, as consumers can’t plan in advance for their medical expenses. The complaint for this class action alleges that Laboratory Corporation of America, doing business under the name LCA Collections, violated the federal Fair Debt Collections Practices Act (FDCPA) as well as California’s Rosenthal Fair Debt Collection Practices Act (RFDCPA) in overshadowing required information in debt collection letters.

laboratory_corp_fdcpa_complaint.pdf

Case Event History

LCA Collections Misleading Collection Letter FDCPA Complaint

January 16, 2020

Bills related to medical diagnoses and treatments often go into default, as consumers can’t plan in advance for their medical expenses. The complaint for this class action alleges that Laboratory Corporation of America, doing business under the name LCA Collections, violated the federal Fair Debt Collections Practices Act (FDCPA) as well as California’s Rosenthal Fair Debt Collection Practices Act (RFDCPA) in overshadowing required information in debt collection letters.

laboratory_corp_fdcpa_complaint.pdf
Tags: FDCPA, Improper Validation Notice, Misleading or Confusing Debt Collection Letter, Unlawful Debt Collection