AllianceOne Unfair Debt Collection Class Action Continues

A federal judge in Washington state has sided with a consumer in denying a motion to dismiss an debt collection class action lawsuit against the collection agency, AllianceOne Receivables Management.

Plaintiff Margaret G. filed the illegal debt collection class action lawsuit against the collection agency AllianceOne for violations of the Fair Debt Collection Practices Act (FDCPA). The FDCPA class action lawsuit alleges that the debt collection agency participated in unfair debt collection practices by using false and misleading practices in the attempt to collect a debt.

According to the unfair debt collection class action lawsuit, Margaret bounced a check related to purchasing license plates and tags for an automobile. In 2012, Margaret moved to Washington state and registered her car, paying the state $90.25 with a check. In 2013, when she renewed the registration, she was told that the first check had been returned and that her account was now with the debt collection agency, AllianceOne.

Margaret contacted AllianceOne immediately and paid AllianceOne $98.77, which included an additional charge for allowed interest. But the collection agency informed her that she still owed “considerable more money for legal fees and costs.”

AllianceOne filed a debt collection class action lawsuit to recover the $710 it claimed it was owed for legal fees and costs. The company subsequently filed a motion for summary judgment that included an attached Notice of Dishonor of Check that was previously sent to Margaret that read: “You are also cautioned that law enforcement agencies may be provided with a copy of this notice of dishonor and the check drawn by you for the possibility of proceeding with criminal charges if you do not pay the amount of this check within 30 days after the date this letter is postmarked.”

Margaret filed an unfair debt collection class action lawsuit shortly thereafter claiming violations of the FDCPA that prohibit debt collectors from making claims that a consumer could be arrested or charged with a crime as a penalty for non-payment.

AllianceOne argued that the debt did not fall under the FDCPA because it was incurred in a transaction required by law.

U.S. District Judge Robert Bryan sided with Margaret, ruling that she had stated a claim under the FDCPA and allowed the case to proceed.

What is the Fair Debt Collection Practices Act?

In 1977, in response to a growing problem with abusive debt collection practices, the federal government enacted the Fair Debt Collection Practices Act. The objective of the FDCPA was to eliminate unfair debt collection practices by penalizing businesses that violated the regulations. In addition to imposing requirements on debt collectors, the FDCPA prohibited a variety of abusive collection practices.

Join a Free Unfair Debt Collection Class Action Lawsuit Investigation

If a lender or debt collector engaged in 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.