Class Action Filed Against Arstrat Over Debt Collection Tactics

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Arstrat, LLC has been named in a proposed class action claiming the company violated the Fair Debt Collection Practices Act (FDCPA) by sending the plaintiff a collection letter that unlawfully said the company might report her to credit reporting agencies even though it had no intent to do so. The plaintiff claims she did not dispute or request verification of a debt for which a collection letter was sent in June 2016. The plaintiff’s debt reportedly remained delinquent, and she received another collection letter three months later. Upon receipt of that letter, the lawsuit notes, the plaintiff’s delinquency had not been reported to any credit monitoring bureau.

“Since [the plaintiff’s] alleged deadline to dispute or request validation has passed by more than five months, [the defendant] made this statement without the intent to actually report,” the lawsuit argues, noting that the threat of reporting a debt to credit agencies can be a powerful tool collection outfits use to induce debtors into payment.