This is an important case to check out if you work in the debt collection industry, or you work against the debt collection industry.
Two plaintiffs, with nearly identical back-stories, had outstanding medical bills. Neither paid their bills. Both accounts were referred to Franklin Collection Service, Inc., after the original healthcare providers tacked on a "collection fee" of 30 to 33.3 percent. Franklin had agreements with both providers that awarded it 30 percent of whatever it collected.
The difference? One plaintiff, Calma, signed an agreement that allowed for "all costs of collection including reasonable interest, reasonable attorney's fees (if suit is filed) and reasonable collection agency fees," while the other, Bradley, signed an agreement that agreed that he would be responsible for the "costs of collection."