Debt Collection Fraud and Class Action Lawsuit

Have you ever received a call from a debt collector concerning a debt that you did not actually owe? Consumers in Chicagoland should know that they have protections under the Fair Debt Collection Practices Act (FDCPA). According to a recent article in the Cook County Record, an Illinois woman has filed a possible class action claim in relation to a Chicago debt collection company’s practices. Did the debt collector violate the FDCPA? As the article explains, the consumer alleges that the collection company “improperly attempted to collect a medical debt she owed, under a payment plan she maintained she never agreed to, and even though she was never placed into collections.”
The consumer filed the potential class action suit because she think the Chicago-based debt collector may have treated other consumers in the same way.
Cook County Lawsuit Implicated Harris & Harris Ltd.
What do you need to know about the recent lawsuit? According to the article, the plaintiff, Illinois resident Angelica Griffin, filed a lawsuit against Harris & Harris Ltd., a debt-collection agency, as well as several other companies affiliated with Harris & Harris Ltd. The company “collects debts on behalf of clients throughout Illinois and across the U.S., as well as for a number of local governments, including the city of Chicago.”
How did the lawsuit come about? The plaintiff had unpaid medical bills at Northwestern University hospital, for which she set up a payment plan with Northwestern. According to the plaintiff’s complaint, she agreed to make monthly payments of $50 until the bill was paid off. The plaintiff alleges that she did not piss any payments and received an online confirmation for each payment she submitted.

However, toward the end of the summer, the plaintiff received collection letters from Harris & Harris Ltd. that informed her she was behind on payments. The letters allegedly demanded that the plaintiff pay $681. The plaintiff has emphasized that she was never contacted by Northwestern about any late payments, and she never agreed to any kind of payment plan that involved Harris & Harris Ltd.
Potential Formation of Class for a Class Action Claim
Supposing that other consumers may be in a similar position, the plaintiff has asked the Cook County Circuit Court to “create three classes of additional plaintiffs, including anyone in the U.S. and anyone in Illinois who received similar communications from Harris & Harris.” What harms should those plaintiff have endured? According to the plaintiff’s claim, potential plaintiffs may include anyone whose communications with Harris & Harris Ltd. Indicated that “they owed unpaid debts under payment plans they had not agreed to, and demanding payment in a similar fashion.”
Class actions are those that involve a large number of plaintiffs who have been injured in a similar fashion. According to Rule 23 of the Federal Rules of Civil Procedure, the prerequisites for a class action include:
  • So many plaintiffs that it would not be practical to bring all into a courtroom;
  • Common questions of law or fact among the plaintiffs in the class (in other words, the plaintiffs have been injured in a similar fashion); and
  • Representatives for the class will protect the interests of all members.
We will need to wait and see what happens with the present case. In the meantime, if you believe you were treated unfairly by a debt-collection company, you may be eligible to seek compensation by filing a lawsuit. An experienced Oak Park consumer protection lawyer can assist you. Contact the Emerson Law Firm today for more information.
See Related Blog Posts:
Settlement in Wells Fargo Consumer Fraud Case

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