Credit Control Services Found Liable in Suit Challenging Collection Fees

In a ruling issued March 31, 2009, the United States District Court sitting in Worcester found Credit Control Services, Inc., liable for charging a consumer a 30% collection fee before any monies had been actually collected from him. The basis of the ruling was that since the creditor did not incur a collection cost until money was recovered from the consumer, it was a violation of both the FDCPA and G.L. c. 93A for Credit Control to charge a percentage-based fee immediately upon the account being placed for collection. The plaintiff is represented by Quat Law Offices, and seeks to have the case certified as a class action.