Consumer Accuses Asset Recovery Solutions of Abusive Debt Collection Practices

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Asset Recovery Solutions, LLC finds itself as the defendant in a proposed class action filed by a New York consumer over alleged violations of the Fair Debt Collection Practices Act (FDCPA).

According to the suit, the defendant sent a letter to the plaintiff in November 2017 concerning a debt incurred to LendingClub Corporation in the amount of $20,288.90. The case says the letter stated, in part:

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

This statement misrepresented the plaintiff’s debt, the complaint says, as the account was not accruing interest. The case claims the letter deceptively implied that the man had a “financial incentive to pay this debt sooner, or risk owing a higher amount,” when, in fact, his debt balance was not subject to change.

In sum, the suit argues the defendant violated the FDCPA by “creating confusion” as to the amount of debt and using false representations in its collection efforts.