American Recovery Service Accused of Illegal Debt Collection Activity in West Virginia

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A proposed class action has been filed against American Recovery Service Incorporated over claims that the company engaged in debt collection activities in West Virginia when it was not licensed to do business nor collect debt in the state. The three plaintiffs claim they each received a collection notice from the defendant sent sometime before August 2017. On August 8, 2017, the plaintiffs’ counsel reportedly sent a certified letter informing the debt collector that it was operating without a Business Registration Certificate, “was not bonded to collect debt in West Virginia,” and had not properly registered its tradename with the West Virginia Secretary of State.

After receiving the letter, the complaint attests, the defendant “became registered to do business with the Secretary of State of West Virginia” and then responded to the plaintiffs’ counsel on September 19, 2017, asserting that it was properly licensed.

It wasn’t until February 28, 2018 that the debt collector actually obtained a Business Registration Certificate, the complaint continues - months, even years, in two of the three cases, after it first began its improper attempts to collect debt from the plaintiffs. The suit claims the defendant’s actions constitute “abusive and deceptive debt collection practices” and were illegal under federal law.