Allied Interstate Facing FDCPA Lawsuit by NC Man

Allied Interstate Collection Agency is being sued in a Fair Debt Collection Practices Act lawsuit by a North Carolina man who claims the debt collection agency engages in deceptive and unfair debt collection practices.

Plaintiff L. James C. alleges Allied sent him a written document claiming it was James’ creditor and demanded “money in exchange for not suing the plaintiff.” Allied allegedly continued to send the plaintiff written communications with the same exact message.

According to the FDCPA lawsuit, each of the messages “appear to have been calculated to coerce the plaintiff into providing financial disclosures and money in exchange for the promise of not suing him or garnishing his wages.”

James claims that he responded to Allied’s written communications every time with a notice of dispute, demanding validation for Allied’s claims with records or some type of information demonstrating Allied holds the legal right to collect the alleged debt, as well as to obtain and use his information.

The Allied FDCPA lawsuit claims the defendant failed to answer James’ request, and furthermore threatened that they would report the plaintiff’s alleged debt to the Internal Revenue Service, with the intent of subjecting James to taxes on the falsely claimed debt reported by Allied.

James alleges Allied falsely misrepresented itself as the creditor of the alleged debt and falsely represented the amount of money allegedly owed by James. Allied also allegedly wrongly claimed the debt collection company had the right to foreclose on his property and used false names when initiating these collection actions.

James brings several allegations against Allied in this FDCPA lawsuit, including claims that the company violated several FDCPA statutes, violated the Telephone Consumer Protection Act (TCPA),and claims of identity theft.

In terms of relief, James is seeking $253,320 in actual and other types of damages, as well as any other forms of relief deemed fit by the court.

The Allied FDCPA Lawsuit is Case No. 1:15CV303, in the U.S. District Court for the Middle District of North Carolina.

What is the Fair Debt Collection Practices Act (FDCPA)?

The Fair Debt Collections Practices Act (FDCPA) is a set of laws enacted by the federal government restricting creditors and debt collectors from taking advantage of consumers through unfair debt collection practices.

While debt collection itself is not illegal, debt collection companies must respect borrowers’ rights and follow the debt collection protocols set by the FDCPA, otherwise they may be hit by an unfair debt collection lawsuit.

According to the FDCPA, unfair debt collections practices that violate the rights of the consumers include:

• Debt collection harassment
• Telephone harassment
• False statement and deceptive practices
• Collection of debts not owed by the consumer
• Collection of expired debts
• Improper reporting of the debtor’s loan to credit reporting agencies
• Refusing to cease communication even under request
• Improper communication between the lenders and other third parties

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.