Lawsuit: Alliance Persuades Consumers to Provide Personal Info

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Alliance Collection Agencies, Inc. is facing claims that it violated the Fair Debt Collection Practices Act by including a “false and misleading statement” in collection letters it sent to consumers. In a proposed class action lawsuit against the debt collector, a Wisconsin woman alleges she received a collection letter from Alliance stating that, if contacted, the defendant would perform a “financial assessment” for the plaintiff to determine whether she qualified for a settlement offer. The suit argues that this statement is misleading because a settlement offer is determined by “the age and amount of the debt, regardless of the consumer’s financial situation.” The suit further claims that Alliance included this statement in its letters in order to “convince” consumers to provide the debt collector with their personal financial information.