Allied Interstate Named in Lawsuit Over Mention of Possible Tax Consequences in Collection Letter

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Allied Interstate, LLC is on the receiving end of a proposed class action filed in Georgia wherein the plaintiff claims she received a collection notice containing deceptive information regarding possible tax consequences should her debt be forgiven.

The plaintiff received the notice in question in January 2018, the case says. The defendant supposedly offered to settle the plaintiff’s debt amount for $181.38. In the letter, the defendant reportedly informed the plaintiff that the IRS may be notified of the debt forgiveness of any amount exceeding $600. This tactic, the lawsuit argues, serves to “scare [the plaintiff] for fear of tax repercussions,” and amounts to a deceptive statement meant to confuse the consumer.

“The Defendant’s false statement invoking the Internal Revenue Service was, further, misleading and deceptive in that it was materially confusing to Plaintiff who was unaware that she could not possibly incur tax consequences in this instance,” the complaint reads.