Ad Astra Recovery Services Inc. is the defendant in a proposed class action alleging the company violated the Fair Debt Collection Practices Act (FDCPA) by way of a misleading collection letter. The lawsuit was filed by a Wisconsin consumer who allegedly owed a debt to Speedy Cash for a personal loan.
The disputed letter failed to appropriately identify the creditor, the lawsuit says. The letter allegedly referenced Speedy Cash as the “original creditor” but cited an “assignment date” of December 16, 2015, implying that another entity is the “current creditor.” Furthermore, Ad Astra supposedly referenced a “client” without specifying its client’s identity. The complaint argues that the defendant’s failure to specifically name the plaintiff’s “current creditor” is “misleading,” “deceptive” and violates the FDCPA.
The letter also listed $0 in “collection fees” which, the lawsuit argues, aimed to imply that if a timely payment was not made, the debt balance would increase. According to the lawsuit, the implication of possible collection fees was false and unlawful due to the defendant and the creditor being prohibited from applying such fees under the Wisconsin Consumer Act.