Class Action Debt Collection Lawsuit Filed in U.S. Court

A new class action debt collection lawsuit has been filed in New York in U.S. District Court, alleging FDCPA violations and unfair collection practices.

Plaintiff Cindy B. filed this class action debt collection lawsuit against ARS National Services Inc. on behalf of herself and others who might have had similar experiences with this debt collection agency.

Cindy, according to her class action debt collection lawsuit, seeks compensatory damages for the alleged violation of the Fair Debt Collections Practices Act (FDCPA), a federal law designed to protect consumers from unfair, abusive, and harassing methods of securing remuneration on a debt.

She claims that defendant ARS National Services Inc., a California-based collection agency, was assigned the duty of attempting to collect on a debt of $798.89 owed to another party.

Cindy had, as laid out in the class action debt collection lawsuit, fallen behind on her payments toward this amount loaned to her for personal use.

ARS National Services Inc. allegedly contacted the plaintiff by letter in early November 2017. Cindy says the contents of the letter did not indicate the precise amount she owed toward the debt, but instead said that Cindy could consider the debt settled for a payment of $6,382.86.

This is an alleged violation of the FDCPA in that debt collectors are required to identify clearly the amount owed. This can be done in the original communication or in a separate written notice sent within five days of the first.

Collection Agent Communications

The initial communication by the debt collector, provided in Exhibit One of the class action debt collection lawsuit, did not explain further why the agency felt that an additional amount of $5,583.37 over and above the original debt of $798.89 was warranted to settle the matter.

The letter also made a statement that the plaintiff would ‘save’ $5,583.37 if she paid $6,382.86 in short order. Through her counsel, the plaintiff indicates that this is a false and deceptive statement from which debt collectors are prohibited.

The plaintiff seeks to represent a Class of similarly situated people of the State of New York who have received communications from this agency in violation of the FDCPA. The Class size is estimated to be approximately 35 citizens.

The proposed Class Members would have received initial letters that all indicated they could save substantial money if they considerably overpaid their debt.

Cindy asks for a jury trial in this matter and certification of herself as class representative. She also asks for certification of her attorneys as class counsel. She identifies the class period as being from Feb. 27, 2017 to the date of filing her class action debt collection lawsuit.

She requests damages to be paid for herself and class based on multiple violations of 15 U.S.C. § 1692. As part of that compensatory relief, she requests all attorney and court fees as well as miscellaneous costs of litigation.

The Class Action Services Debt Collection Lawsuit is Case No 2:18-cv-01250-LDW-ARL in the U.S. District Court, 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.