Three Wisconsin Consumers Claim Allied Interstate Violated Debt Collection Laws

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Three Wisconsin consumers have filed a proposed class action in which they allege defendant Allied Interstate LLC mailed them collection notices that violated the Fair Debt Collection Practices Act (FDCPA). The plaintiffs each claim the collection notices they received from the defendant left them confused as to how much money was owed on their respective accounts on the day Allied Interstate mailed their letters. In fact, the defendant’s representation of their respective balances, i.e. that it supposedly rounded off the individual’s obligations to the nearest dollar, put the plaintiffs at risk of incurring hefty fees on top of what they already owed, the lawsuit argues.

“Allied’s representation that the balance of the account is lower than the actual amount of the balance—by truncating the cents—places the consumer at risk of not paying a sufficient amount to pay off the balance,” the lawsuit asserts. “A consumer who believes she is paying off an account, but whose payment is actually short of the real balance of the account, risks incurring significant costs due to unpaid residual interest and late fees.”