Creditors’ Discount & Audit Co. , Inc. (CDA) is a third-party collection agency based in Illinois. CDA has received consumer complaints alleging violations of the Fair Debt Collections Practices Act (FDCPA), such as attempting to collect debts not owed and using false or misleading language in an effort to collect a debt. If CDA has contacted you about past due collection items,make sure you understand your rights before you take action.
The harassing company pays our fees.
They’re legit. According to the Better Business Bureau (BBB), Creditors’ Discount & Audit Co., Inc. is a legitimate collection agency, founded and incorporated in 1976. The BBB established a profile page for CDA in 1993, and CDA has been a BBB-accredited business since 2015. The BBB lists CDA as a collection agency and collection system that uses the alternate business name, Unlimited Progress, Inc. (UPI). Buzzfile estimates CDA annual revenue at $1.8 million and the size of its headquarters staff at 20 employees.
According to its website, CDAC has been a“family owned business …and licensed debt collector for over 40 years.” CDA states that it has provided collection assistance to thousands of clients; and…holds integrity, honesty, and fairness as the cornerstone of their business.” CDA is “ passionate about their business and believes deeply in the value that they bring to… clients and to the economy.”
Creditors’ Discount & Audit Co collects delinquent account balances for the healthcare, banking, utilities, and retail industries. Collection services include third-party collections, early-out or first-party programs; pre-collect programs; and collection litigation. CDAC’s collection process includes a National Change of Address and bankruptcy scrub; letter series with dunning letters sent to consumers; skip tracing when letters are returned; credit reporting after 60 days of non-payment; litigation for persistently delinquent accounts; and monthly client reporting.
CDA is affiliated with many professional associations, including NobelBiz; the American Association of Healthcare Administrative Management (AAHAM); the Great Lakes Credit and Collection Association (GLCCA); and the International Association of Credit and Collection Professionals (ACA International).
The home page of the CDA website includes a “How Can I Stop the Calls?” link that leads to a page with information about consumer rights. This page provides site visitors with contact information to dispute debts or to make payments. There are also links to the Fair Debt Collection Practices Act (FDCPA); the Fair Credit Reporting Act (FCRA); Ask Doctor Debt; and the Consumer Financial Protection Bureau (CFPB).
Who are we? We are Lemberg Law, a Consumer Law Firm
Lemberg Law is a consumer law firm helping victims of collection harassment and abuse. We are ranked A+ by the BBB. We’ve helped more than 15,000 consumers stop harassment and recover money from debt collectors. Harassed? Abused? Misled by a collector? Call our Helpline today! There is no charge unless we win.
As of March 2018, the BBB has closed 14 complaints against Creditors’ Discount & Audit Co in the past 3 years, with 3 complaints closed in the previous 12 months. Almost all of those complaints alleged problems with billing and collections. As of April 2015, the Consumer Financial Protection Bureau (CFPB) has closed 23 complaints against CDA. Justia lists at least 2 cases of civil litigation involving CDA.
Creditors’ Discount & Audit Co., Inc.
P.O. Box 213
415 E. Main Street
Streator, IL 61364
Telephone: (815) 672-3176
Website: http://www.cdac.biz/
It is illegal for a debt collector to make empty threats to sue you or garnish your wages. It is also unlikely CDA would sue you for a debt you may not owe or they cannot validate. However, debt collection agencies are known to have summoned debtors to court and garnish wages after a default judgement. Contacting an attorney BEFORE this could possibly happen would be a smart move. We’ve helped thousands of consumers fight back against unscrupulous debt collection harassers. Find out if we can help you too today!
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Absolutely. Here are some Sample Cases
In August 2012, in the United States Court of Appeals for the Seventh Circuit, a judge issued an order in a case alleging Creditors’ Discount & Audit Co’s collection letters had violated the FDCPA. In the original case, the plaintiff had suffered an injury and was treated at a local hospital. Before receiving medical care, he was required to sign an agreement that stated he was “responsible for all fees,regardless of insurance coverage,” and that it “is customary to pay for services when rendered unless other arrangements have been made in advance with our office bookkeeper.” The plaintiff was charged $235.07 for medical services, but because he had lost his job around the time he was injured, he was unable to pay the bill. The bill was sent to CDA for collection, and CDA sent several letters to the plaintiff, which included the following statement:
“You have the right to pay this claim now. To avoid further steps, respond within 48 hours. Consider our clients sic lawful alternatives closely. Our client may take legal steps against you and if the courts award judgement, the court could allow court costs and attorney fees.”
The plaintiff filed a complaint, stating that the letter violated the FDCPA’s prohibition against using “any false, deceptive, or misleading representation or means in connection with the collection of any debt.” The plaintiff argued that Creditors’ Discount & Audit Co’s statement that he would liable for the doctor’s attorney fees was false and misleading, but the judge found that “the letters in question
made no specific demand for attorney fees and did not state a specific amount of attorney fees that would be owed.” CDAC also used conditional language such as, “our client may take legal steps” and “the court could allow . . . attorney fees.” As a result, “the magistrate judge ruled that the attorney fees language was not violative of the FDCPA.”
On appeal, the plaintiff argued that “the clear language in CDAC’s letters intimated that if he did not pay his debt, CDA could have filed suit, and a court would have had the legal authority to impose… attorney fees.” The plaintiff argued that this statement violates the FDCPA because “under the so-called ‘American Rule,’ a losing party cannot be charged with the winning party’s attorney fees unless a statute or a contract explicitly states otherwise.” In addition, “the conditional nature of the statement does not” excuse Creditors’ Discount & Audit Co’s practice because “there are no circumstances under which attorney fees could have been levied.” Finally, the plaintiff claimed that “this false statement was material, since it suggested that he may have had to pay more than the actual amount owed…if he did not pay his debt off within 48 hours.” Attorneys for CDA attempted to argue that the language in the collection letters was neither false nor misleading because they did not state specifically that they were going to charge attorney fees. The court disagreed, stating that because it was not possible for CDAC to have charged any attorney fees even if they had prevailed at court, suggesting that they might or that they could impose such fees was necessarily false and misleading. As a result, “the attorney fees statements found in CDA’s dunning letters were materially false and misleading on their face,” and the appeals court reversed “both the grant of CDA’s summary judgment motion and the denial of the plaintiff’s summary judgment motion.” The case was remanded to the district court for
further litigation.
Federal laws protect you. The Fair Debt Collections Practices Act (FDCPA) regulates the behavior of collection agencies by prohibiting actions such as the use of abusive or threatening language; harassment; or the use of false or misleading information to collect a debt. The FCRA regulates how collection agencies and creditors report delinquent debts to credit reporting agencies. Additional consumer protection laws include the Telephone Consumer Protection Act (TCPA) and the Consumer Financial Protection Act (CFPA).
But here’s the rub: If you want to enforce your rights, or recover money for violations — you need to sue. These laws provide individuals like you with a means to seek monetary damages in court. For example, the FDCPA allows consumers who have been violated to recover damages of up to $1,000, plus attorney fees and court costs.
You may have a case, if…
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Sergei Lemberg is an attorney focusing on consumer law, class actions related to automotive issues, and personal injury litigation. With nearly two decades of experience, his areas of practice include Lemon Law (vehicle defects), Debt Collection Harassment, TCPA (illegal robocalls and texts), Fair Credit Reporting Act, Overtime claims, Personal Injury cases, and Class Actions. He has consistently been recognized as the nation's "most active consumer attorney." In 2020, Mr. Lemberg represented Noah Duguid before the United States Supreme Court in the landmark case Duguid v. Facebook. He is also the author of "Defanging Debt Collectors," a guide that empowers consumers to fight back against debt collectors and prevail, as well as "Lemon Law 101: The Laws That Lemon Dealers Don't Want You to Know."
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