A lawsuit against Credit Management Services, a Grand Island, Neb. collection agency, can continue as a class action that might include as many as 27,000 eligible Nebraskans, U.S. District Judge Joseph F. Bataillon has ruled.
The ruling stems from a 2011 lawsuit accusing the company of violating federal collection laws by wrongly stating payment requests were sent 90 days before the filing of collection lawsuits. The lawsuit also stated that Credit Management requested detailed financial information, such as copies of tax returns and pay stubs, after it had filed collection suits.
Requests for such information violates federal collection laws and deceive the unsophisticated consumer into believing such information must be provided in order to defend the collection lawsuit, the lawsuit reads.
The court also is currently considering a motion by Credit Management to rule summarily in its favor because the suit, according to case documents, constitutes a collection of conclusory statements which purport to establish alleged violations but, ultimately, lack sufficient facts or applicable law to support them," according to the Omaha (Neb.) World-Herald.
Court documents indicate lawyers for consumers believe 27,000 people were sued in Nebraska by Credit Management during the relevant periods, which date back as far as four years. Credit Management, according to court documents, contends there are only 5,000.
Credit Management employs an estimated 180 people, according to the company's Web site, and works with approximately two-thirds of Nebraskas hospitals. The company says it has 1,800 clients across the region.
The suit says the company wrote in its standard collection lawsuits filed against consumers that more than 90 days had elapsed between demand for payment and the filing of the legal action.