ARS National Services Misstates Consumer’s Dispute Rights, Suit Says

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A California consumer has filed suit against ARS National Services Inc. claiming the debt collector sent a misleading collection letter that failed to comply with the Fair Debt Collection Practices Act (FDCPA). According to the suit, the plaintiff owed a debt to Synchrony Bank that was then sold to Crown Asset Management, LLC. The plaintiff says she received a collection letter from the defendant regarding the alleged debt and was instructed to send any disputes or requests for validation to Crown Asset Management’s address. The suit claims that this information is misleading to the unsophisticated consumer who would be unsure as to whom he or she should send requests – to the defendant or the creditor.

“The rights afforded to consumers under Section 1692g(a) are amongst the most powerful protections provided by the FDCPA,” the complaint reads, “in part because if a consumer properly asks for validation of the debt, a debt collector must cease collection efforts until they are able to properly validate the debt. However, a consumer is only afforded those protections if he or she disputes directly with the debt collector, and not with the creditor to whom the alleged debt is owed to.”