California Residents Challenge ARS National Services' Collection Attempts
A statewide class action has been filed in California against collection specialist, ARS National Services, Inc., who operate as Associated Recovery. The action is brought on behalf of all California residents who received a collection letter from Associated which offered to settle the debt for a lesser amount, if payment was made immediately. The action is brought under the federal Fair Debt Collection Practices Act and seeks statutory damages as well as injunctive and declaratory relief.
This action arises from the alleged policy of Associated in which they include in their collection letters an offer to settle the outstanding debt for a reduced rate. The settlement offer is, according to the letters, a limited offer, requiring immediate payment. According to consumers, this offer is misleading and deceptive because Associated is allegedly always prepared to negotiate a settlement for a lesser amount. Thus, the language requiring immediate action is allegedly deceptive to consumers because they are given the impression that they need to act immediately in order to have an opportunity to discharge the debt at a reduced rate. The consumers claim that this has a coercive effect, limiting their ability to challenge the validity of the debt and limiting their ability to make an informed decision about the debt. The consumers allege that these letters are standard “form” type letters, mailed to thousands of consumers and that, as a result, the class in this case is potentially quite numerous.
http://www.lawcash.com/attorney/3081/ars-national-services-lawsuit.aspARS National Services
201 W Grand Ave
Escondido, 92025-2603 USA
760.753.2700
http://arsnational.com/