Financial Credit Service Failed to Disclose Consequence of Paying Time-Barred Debt, Lawsuit Claims

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Financial Credit Service, Inc. has been hit with a proposed class action lawsuit wherein the plaintiff claims the defendant mailed him a collection notice in which it attempted to collect on a time-barred debt.

According to the lawsuit, the defendant, which does business as ARA, Inc., instructed the plaintiff to call the company should he find himself “unable to pay the entire balance in full . . . to discuss acceptable payment arrangements.” What ARA allegedly failed to disclose to the plaintiff is that should he submit payment on the time-barred obligation, he would then be open to litigation that otherwise would not have been an option, the suit says.

“The Collection Letter does not advise [the plaintiff] that Consumer Debt is in fact time-barred or that making a payment towards the Consumer Debt will revive the statute of limitations,” the case argues.

The lawsuit chalks the defendant’s alleged nondisclosure as a Fair Debt Collection Practices Act (FDCPA) violation.