Two Michigan residents have filed a class-action lawsuit alleging that debt servicer Money Recovery Nationwide is unlawfully collecting additional fees.

Andrew Corey and Catherine Tubergen claim in the suit that the company violated the Fair Debt Collection Practices Act and the Michigan Collection Practices Act. According to the suit, which was filed in U.S. District Court for the Western District of Michigan, the defendant - through the collection portal of their website, - schemed to collect a 1.55% "convenience" fee and an additional 90 cents charge for credit card payment processing, which is illegal because it represents an amount not expressly authorized in the underlying debt contract. The plaintiffs and others in the class seek a jury trial, actual and statutory damages, treble damages, declaratory relief, attorney fees and other costs. They are represented by attorneys Brian P. Parker of the Law Offices of Brian P. Parker and Nicholas A. Reyna of the Law Offices of Nicholas A. Reyna.

Money Recovery Nationwide is located in Lansing, Mich. Company officials could not be immediately reached for comment.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.