Debt Collector Beats Class Status in Suit Alleging False Threats

Debt collection agency Medicredit Inc. doesn’t have to face a certified class action alleging the company falsely threatened legal action for unpaid medical bills after the Fifth Circuit Jan. 8 cited a lack of evidence regarding the medical center’s intent to sue.

The lack of evidence regarding the class-wide intent of Seton Medical Center means the plaintiffs can’t satisfy the requirements of commonality, typicality or predominance, the U.S. Court of Appeals for the Fifth Circuit said. It reversed a trial court’s class certification order.

Named plaintiff Nina Flecha alleges Medicredit sent her a collection letter that violated the Fair Debt ...