Lawsuit Filed Against Asset Recovery Solutions Over ‘Misleading’ Debt Balance

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A proposed class action has been filed against Asset Recovery Solutions LLC for allegedly making a phony “threat” to increase interest on a consumer’s debt. The plaintiff, who purportedly owed a debt to First Premier Bank, received a collection letter from the defendant in September 2017 that contained the following statement:

“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.” 

The lawsuit argues that the above language is deceptive and misleading, as the defendant was aware that the balance of the plaintiff’s debt would not increase. As such, the letter violates the Fair Debt Collection Practices Act. The case also argues that the letter unlawfully overshadowed the plaintiff’s right to dispute her debt and attempted to “coerce” immediate payment by manufacturing a sense of urgency through the “threat” of an increasing debt balance.