Asset Recovery Solutions, One Other Hit with FDCPA Suit Over ‘Misleading’ Collection Letter

New to ClassAction.org? Read our Newswire Disclaimer

Asset Recovery Solutions, LLC and Bureaus Investment Group Portfolio No. 15, LLC have been hit with a proposed class action alleging the defendants sent a consumer a collection notice that failed to comply with the Fair Debt Collection Practices Act (FDCPA). The letter allegedly stated the balance purportedly owed by the plaintiff and, a few paragraphs later, included the following statement:

“The account balance may periodically increase due to the addition of accrued interest as provided in your agreement or as otherwise provided by law.”

According to the complaint, the defendants were aware that the plaintiff’s balance was static and would not increase due to interest but included the above statement as a “deceptive collection tactic to get the consumer to pay immediately” and forfeit her right to dispute the debt or request validation. In fact, the plaintiff claims she believed she should take action as soon as possible “to avoid accruing interest and fees” that didn’t actually exist.