A collection agency has been ordered to pay more than $800,000 plus interest to consumers who paid higher bad-check fees than allowed by law.
U.S. District Judge Tena Campbell's judgment affects more than 12,000 Utah consumers wronged by Check Rite Ltd. Inc. and attorney Richard DeLoney.Campbell in 1997 found Check Rite in violation of the Fair Debt Collection Practices Act for requiring consumers to pay a special fee to avoid threatened lawsuits.
Originally filed by Rebecca and Bryan Ditty, the lawsuit earned class-action status last year when the court determined Check Rite's unlawful actions against the couple were a company practice.
The case began after the Dittys bounced an $11.60 check to an Arby's restaurant. They got a letter from the DeLoney & Associates law firm of Midvale saying Check Rite would not file a lawsuit if the couple agreed to pay $99.60.