LTD Financial Services, Advantage Assets Hit with Debt Collection Class Action

New to ClassAction.org? Read our Newswire Disclaimer

LTD Financial Services, L.P. and Advantage Assets II, Inc. are on the receiving end of a proposed class action lawsuit that alleges violations of federal debt collection law. According to the suit, the defendants sent the plaintiff a collection letter indicating that LTD “will not sue” the plaintiff because of the age of the debt.

“The language of the LETTER,” the complaint explains, “gives the false impression to least sophisticated consumers that LTD has voluntarily chosen not to sue [the plaintiff], instead of stating that AAII and LTD cannot sue him to collect the Debt because the statute of limitations had expired.”

The suit argues that the letter failed to mention to the plaintiff that his alleged debt was time-barred and that the law prohibited his creditor and any debt collectors from commencing litigation against him. On top of that, the case attests, the defendants also neglected to disclose in the letter that the plaintiff may suffer tax consequences if he accepted either of the two included settlement offers.