AllianceOne Receivables Management Inc. (ARM) is the defendant in a proposed class action lawsuit filed by two Wisconsin consumers who allege they received misleading letters from the debt collection agency.
The suit accuses the defendant of misrepresenting one plaintiff’s debt amount by sending a notice that misleadingly implied her total account balance was due instead of just the minimum payment. Further, the case says the letter went on to state:
“If you do not pay the Minimum Amount Due by 01/20/2018, you are not giving up any of your rights regarding this debt.”
Assuring the plaintiff that she would not be forfeiting any rights by not paying was deceptive in that the creditor may “impose a late fee or accelerate the remaining balance of the debt” in the absence of timely payment, the complaint says.
Moreover, the suit alleges the letter overshadowed the plaintiff’s debt dispute rights by instructing her to correspond with the defendant rather than directly with her creditor.
The other plaintiff claims he received a letter that improperly referred to a settlement option as an offer to “reduce the balance” of his debt, falsely implying that the debt would be reported as “paid in full” rather than “settled in full” if the plaintiff remitted the amount listed. From the complaint:
“Upon information and belief, ARM uses the phrases ‘reduce the balance’ and ‘reduced payment amount’ to confuse consumers and induce them into paying this amount under the assumption that ARM, and the creditor, will report the account to consumer reporting agencies as ‘paid in full.’”
Camp Lejeune residents now have the opportunity to claim compensation for harm suffered from contaminated water.