Alltran Financial Facing Allegations of FDCPA Abuses

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A proposed class action lawsuit claims Alltran Financial, LP violated federal debt collection law when it sent the plaintiff a collection notice that unlawfully placed a time limit on a debt collection offer. This false time limit, conveyed with the language that the settlement offer would only be valid if payment were received within 10 days of receipt of the collection notice, was meant to impart a sense of urgency to induce payment, the suit claims.

“Statements such as a settlement offer is a ‘limited time offer,’ or that the offer expires on a specific date, or that payments must be received by that date, are false and misleading because the same offer is, upon information and belief, available at any time,” the lawsuit claims. “Such false statements are material false statements, as they impart in the unsophisticated consumer a false belief that he or she must hurry to take advantage of a limited-time opportunity, when in reality there is no such time limit.”