American Recovery Service Incorporated Hit with FDCPA Suit

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A class action filed against American Recovery Service Incorporated claims the debt collection agency violated the Fair Debt Collection Practices Act (FDCPA) by failing to disclose in a collection letter whether the plaintiff’s debt may increase from the stated amount due to interest and fees. The suit specifically alleges the defendant’s debt collection letter failed to include FDCPA-required safe harbor language, which could leave the unsophisticated consumer uncertain as to whether their debt amount was continually accruing interest and fees. Under the FDCPA, debt collection letters must correctly state the in-full amount of debt owed, as well as state on which date the debt owed was calculated.