Class Action Alleges Absolute Resolutions Corp. Had No License to Collect Debts in Arkansas

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An Arkansas consumer claims in a proposed class action that Absolute Resolutions Corporation attempted to collect on his debt without the required state license to do so.

The suit says that Absolute Resolutions retained law firm and co-defendant Lloyd & McDaniel, PLC to sue the plaintiff for a debt he incurred after financing a purchase from Harris Jewelry. The case alleges that unlike the law firm, which was properly registered as a debt collector in Arkansas, Absolute Resolutions held no authority to engage in collection activities. After the plaintiff hired his own counsel, the defendants, among whom are the president and CEO of Absolute Resolutions and an attorney with Lloyd & McDaniel, supposedly demanded that the man pay $581 in exchange for a dismissal of the case against him with prejudice, for which he argues he is not liable.

The proposed class action claims that the defendants misled the man as to his rights under the Fair Debt Collection Practices Act (FDCPA).