Alliance One Hit with Four Consumers’ Multiple-Count FDCPA Suit

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Alliance One Receivables Management, Inc. is on the receiving end of a proposed class action lawsuit filed by four plaintiffs who allege the defendant sent them misleading collection letters that violated the Fair Debt Collection Practices Act.

According to the complaint, the letters were confusing because they presented the recipients with settlement offers but failed to explain how the settlement deadline and validation period for each alleged debt “fit together.” In other words, the suit claims the letters neglected to clarify whether the settlement offer would expire if the consumer attempted to dispute the alleged debt or request validation.

The case takes further issue with the letters’ breakdown of added interest and fees, arguing that the inclusion of this list, though the amounts equaled zero, implied to the recipients that the debt collector could add additional charges to their debts in the future.

“The unsophisticated consumer,” the suit reads, “could send a check for the settlement amount and would not know whether he had sent enough money to actually settle the account, due to the possibility that Alliance One, on a whim, added interest or other charges to the settlement amount.”

Finally, three of the plaintiffs claim the defendant also included a false threat of legal action in their letters when their creditor had “no intention of suing.”