ARS National Services Sued Over Collection Letter’s ‘Deceptive’ Promises

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ARS National Services Inc. is facing a proposed class action lawsuit filed by a New York woman who claims the defendant sent her a debt collection letter that misled her as to the purported consequences of settling her alleged debt. According to the complaint, the letter contained the following statement:

“If we settle this debt with you for less than the full outstanding balance, Chase may offer you less favorable terms in the future for some Chase products or services, or may deny your application.”

The suit argues that the letter is “misleading and deceptive” because it falsely implies that the plaintiff will improve her creditworthiness by paying off the full amount of the balance instead of settling for a lesser amount.