Debt Collector Broke Fair Debt Collection Laws, Says Wisconsin Plaintiff

A Wisconsin resident has filed a class action lawsuit against the debt collector Asset Recovery Solutions, alleging the company violated a number of fair debt collection laws.

The plaintiff, John S., alleges he received a letter from Asset Recovery in August 2017, claiming that he owed a debt to Capital One. The debt had been passed on to Asset Recovery to collect. However, the lawsuit claims, the letter violated a number of fair debt collection laws by making false or misleading statements that could deceive consumers.

Indeed, according to the lawsuit, the debt collector falsely warned John that, “Should you choose not to accept this offer, the account balance may periodically increase due to the addition of accrued interest as provided in your agreement with the original creditor.”

However, this was a false threat made to influence the plaintiff, the lawsuit claims.

John alleges that he was “deceived, misled, and confused by the letter”—and claims that others in his situation may have been affected similarly as well. He believes other debtors in a similar situation got the same form letter.

John filed his FDCPA class action lawsuit on Aug. 1, 2018, in the U.S. District Court for the Green Bay Division of the Eastern District of Wisconsin. The lawsuit was filed as a class action on behalf of other Wisconsin residents in a similar situation.

Fair Debt Collection Laws

The Fair Debt Collection Practices Act (FDCPA) is a set of debt collection regulations meant to help protect consumers from being taken advantage of, harassed, or threatened by a debt collection agency. The FDCPA was first enacted by Congress in 1978.

In recent years, collection agencies have become more and more aggressive, and many of these companies may work for major banks, credit card companies, and student loan companies, as well as debt buyers.

In some cases, the companies may use illegal debt collection practices to collect on what’s owed them—or even an invalid or previously discharged debt. Indeed, millions of Americans may have been targeted with illegal and abusive debt collection practices, but most are not armed with the information necessary to know there are laws in place protecting them from such abuses.

Laws at both the federal and state level protect Americans from abusive debt collection practices. Debt collectors are not allowed to send confusing collection letters, make threats, harass, add fees, make robocalls or communicate with third parties about a debt, among others.

Under the FDCPA, if a debt collector is found to have violated these fair debt collection laws, the consumer may be entitled to statutory damages of $1,000, plus any actual or emotional damages.

Filing an FDCPA Lawsuit

This investigation is seeing claimants across the nation, especially residents of Illinois, Indiana and Wisconsin. If you have suffered from abusive debt collection practices like confusing letters, harassment, or violations of fair debt collection laws, you may be able to file a lawsuit under federal and/or state debt collection laws.

The Fair Debt Collection Laws Lawsuit is Case No. 1:18-cv-01182-WCG, in the U.S. District Court for the Green Bay Division of the Eastern District of Wisconsin.

Join a Free Unfair Collection Practices Class Action Lawsuit Investigation

If you’ve been hit with unfair debt collection practices, you may have a legal claim and could be owed compensation for violations of the Fair Debt Collection Practices Act (FDCPA).

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DISCLAIMER: Debt collection itself is not illegal. However, debt collection firms collecting on consumer debts must adhere to the FDCPA. Even though debt attorneys are investigating these companies, their debt collection practices may be legal.