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Cass County consumer alleges debt collection company purposely hid tax consequences of her settlement

SOUTHEAST TEXAS RECORD

Sunday, December 22, 2024

Cass County consumer alleges debt collection company purposely hid tax consequences of her settlement

Debt

MARSHALL — A Cass County woman alleges a debt collection company purposely hid the tax-related consequences of a debt settlement it offered her.  

Tiffany Whatley filed a complaint Dec. 16 in the Marshall Division of the Eastern District of Texas against MRS BPO LLC, alleging violation of the Fair Debt Collection Practices Act (FDCPA) and Texas Debt Collection Act.

Whatley alleges on Nov. 27, she accepted an offer from MRS BPO to settle her $5,250.35 consumer debt that included a "debt forgiveness" totaling $3,485.41 or $3,097.7. The suit states the defendant purposely failed to tell Whatley of the tax consequences involved with its offer and only conveyed the benefit she would receive from accepting the offer.

Whatley seeks injunctive relief, punitive damages, attorney fees, trial by jury and all other just and appropriate relief. She is represented by attorneys Nathan Volheim and Taxiarchis Hatzidimitriadis of The Sulaiman Law Group LTD in Lombard, Illinois. 

Marshall Division of the Easter District of Texas case number 2:19-CV-00402-JRG

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