Allied Interstate Sued Over ‘Misleading’ Collection Letter

New to ClassAction.org? Read our Newswire Disclaimer

A New York woman has filed suit against Allied Interstate, LLC after receiving a debt collection letter she claims was misleading and violated the Fair Debt Collection Practices Act (FDCPA). The notice allegedly informed her that as a result of added interest, the amount owed on the day she submits a payment “may be greater” than the balance listed in the letter. The suit argues that because the defendant neglected to provide information such as the interest rate and date of accrual, it essentially ignored its FDCPA obligation to clearly convey the plaintiff’s “amount of debt.”

The complaint further attests that the defendant unlawfully implied to the plaintiff that she could only submit disputes in writing. She says the letter directed her to correspond with Allied Interstate through a physical address, indicating that if she intended to dispute the debt, she must do so in writing rather than over the phone. The suit argues that the FDCPA imposes no such obligation on the consumer and also allows for oral disputes.