ARS National Services Faces Debt Collection Lawsuit

ARS National Services Inc. is facing a debt collection lawsuit from a New York man, alleging the company conducted aggressive and illegal collection practices. The man claims that the debt collection company violated state debtor’s rights laws and eventually forced him to file this debt collection lawsuit due to an intimidating debt collection letter.

Plaintiff Mario C. is filing this debt collection lawsuit against defendant ARS National Services Inc., after allegedly receiving a misleading and aggressive debt collection letter. This letter was sent to collect an alleged debt, which was reportedly incurred due to a personal or household expense.

According to the debt collection lawsuit, Mario became financially compromised and fell behind on payments before the debt was fully paid off. ARS National Services was then assigned the alleged debt and has since tried to collect it.

The debt collection company first contacted Mario by letter dated Sept. 14, 2016, which stated the balance and charges underwritten by Citibank. Mario had made the purchase with a Citibank credit card, but was unable to fully repay the debt.

According to the debt collection lawsuit, the letter explained the balance and charges making up the debt. In addition, the letter had explained the terms and conditions of the credit card had changed along with explaining any later fees incurred by not meeting payment deadlines.

Furthermore, the right to collect any balance carried on the account was not waived by Citibank and was fully transferred to ARS National Services. At this point in time, the alleged debt continues to accumulate due to continuous late fees.

Mario opted to file the debt collection lawsuit, alleging he was not adequately informed of changes in his credit card policy and that the interest on his debt continued to accumulate. According to the debt collection lawsuit, ARS National Services Inc. had violated New York state consumer protection laws by sending the debt collection letter.

Overview of New York Debt Collection Laws

New York is one of the most progressive states in consumer protection law, with the state imposing strict rules on how debt collection agencies conduct themselves. The newest New York debt collection provisions were enacted in 2015, when New York Governor Andrew Cuomo and the New York Department of Financial Services imposed stricter policies.

The new rules cover statute of limitation disclosures, general debt collection and account specific disclosures, requirements for debt collection, and using email to send debt collection letters. Essentially, these New York debt collection laws require debt collectors to inform consumers whether or not their debts are subject to a statute of limitations.

This means that the debts may already be unenforceable, making them exempt from debt collection. In addition, a federal law, the Fair Debt Collection Practices Act (FDCPA), is also in place to prevent abusive and aggressive debt collection practices.

Millions of New York residents like Mario have allegedly been affected by aggressive debt collection tactics, and have the right to fight back with legal action. Mario is filing this debt collection lawsuit alleging different privacy law violations, along with pain and suffering.

This Debt Collection Lawsuit is Case No. 2:17-cv-05381-LDW-GRB, in the U.S. District Court for the Eastern District of New York.

Join a Free New York Unfair Debt Collection Class Action Lawsuit Investigation

If you live in New York and 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.