Alleged FDCPA Violations Surface in Class Action Against Asset Recovery Solutions

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Asset Recovery Solutions sent a New York consumer a collection notice in which the company unlawfully failed to state if the individual’s debt amount may increase in the future, according to a proposed class action lawsuit. The case alleges that the plaintiff’s account was not subject to the accrual of interest, but that the defendant’s statement of a “Current Balance” falsely implies the amount is subject to change since interest could continually be applied. The complaint cites alleged violations of the Fair Debt Collection Practices Act (FDCPA), as it charges the collection notice in question is deceptive and misleading in that it could be read by the least sophisticated consumer as having two or more meanings.