FDCPA Lawsuit Filed Against Debt Collector ARS National Services

New to ClassAction.org? Read our Newswire Disclaimer

ARS National Services, Inc. is on the receiving end of a proposed class action lawsuit claiming the debt collector violated the Fair Debt Collection Practices Act in collection letters it sent to consumers. The plaintiff was allegedly sent a collection letter that stated a “Balance,” but did not indicate whether the balance included interest, whether interest would accrue, or whether the amount was “static.” “If interest is continuing to accrue,” the suit claims, “the least sophisticated consumer would not know how to satisfy the debt because the letter fails to indicate the applicable interest rate, or date of accrual.”

The letter also contained “Total Amount of Non-Interest Charges or Fees Accrued Since Charge-Off,” which was listed as “$0.00,” according to the complaint. The suit argues that this statement could be interpreted to mean that non-interest charges or fees may be added in the future. The defendant included this information to “falsely imply” that it is permitted to add additional non-interest charges to the debt, thereby inducing the consumer into paying off the debt to avoid fees, the suit says.