Alliance Sets ‘Sham’ Settlement Deadline, Suit Says

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A Wisconsin consumer has filed a proposed class action lawsuit against Alliance One Receivables Management, Inc. claiming the defendant violated the Fair Debt Collection Practices Act by imposing a deceptive deadline on a settlement offer. According to the complaint, the plaintiff received a collection letter from Alliance containing a settlement offer while stating, “If you can’t pay the settlement amount within 30 days, please call 800-279-3480 to discuss other options including a variety of payment plans.”

The suit argues that this “limited-time offer” is misleading because the plaintiff’s creditor allegedly authorized the defendant to accept the offer at any time. Alliance’s insistence that the plaintiff act quickly is a “sham,” according to the complaint and instills “a false belief” that she will be missing out by not paying the settlement offer within 30 days.