Allied Interstate Hit with Debt Collection Lawsuit

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Allied Interstate, LLC has been accused of sending a collection letter that failed to comply with requirements set forth by the Fair Debt Collection Practices Act and Wisconsin state law. In a proposed class action lawsuit, the plaintiff says she received a letter from Allied Interstate regarding a debt allegedly owed to Synchrony Bank that contained a table marking “interest,” “fees,” and “collection costs” as $0.00.

The letter was confusing to the plaintiff because her account had previously been accruing interest, and the letter contained no explanation of the added charges, or, more accurately, the lack thereof, the complaint claims. The notice, according to the suit, “fails to state the amount of the debt in a non-confusing manner” and hinders the plaintiff from being able to determine with certainty the amount she needs to pay.

The suit further claims that the defendant falsely threatened to add “collection costs” to the balance, in violation of state law. By including a column in the letter for collection costs, the defendant implied that these charges might be added in the future, even though the balance in the notice was “$0.00,” the complaint argues. By threatening to collect an illegal fee, the defendant violated the FDCPA, according to the suit.