Lawsuit: Allied Interstate’s Collection Letters Violate Federal Law

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A proposed class action lawsuit has been filed against Allied Interstate, LLC accusing the collection agency of using “unfair and unconscionable means to collect a debt.” According to the suit, federal law requires that debt collectors send within five days of an initial communication a letter that provides the amount of the debt. The suit claims, however, that Allied Interstate failed to note in its letters the minimum amount proposed class members owed, as well as the information that would allow the “least sophisticated consumer” to determine what he or she would need to pay to resolve the debt. The complaint rattles off a list of alleged Fair Debt Collection Practices Act violations, saying that the letters, among other things, illegally failed to include the applicable interest rate, an explanation of any fees or interest that may accrue, and what amount of the debt is attributed to principal and what amount is attributed to interest.

The case seeks to cover all New York residents who received such a collection letter from the defendant within the past year regarding a debt allegedly owed to Synchrony Bank.