ARS National Services, a debt collection company, was recently sued over a technical issue in their debt collection letter.
The Plaintiff claimed the debt the company was attempting to collect on was a defaulted credit card account originally owned by Citibank.
The complaint states the collection letter the consumer received included the following satement:
“Please be advised that your account balance stated above is subject to change, including possible increases due to interest and other charges according to the terms of your original credit agreement.”
The lawsuit says the consumer who received this letter believed “that the balance of her alleged debt would increase in the future because of the addition of interest and other charges by Citibank.” The allegation is that was not a factual statement.
The claim is “Defendant’s inclusion of the statement in the collection letter about the account balance increasing due to the accrual of interest and other charges constitutes a false, deceptive and misleading representation or means used to collect or attempt to collect a debt, in violation of 15 U.S.C. § 1692e.”
It is claimed the form letter sent to the consumer was a template used by ARS National Services so a number of people would have received similar letters with similar allegedly misleading statements.