Allied Interstate Sued Over ‘Misleading’ Debt Collection Practices

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Allied Interstate, LLC is on the receiving end of a proposed class action that alleges the debt collector violated the Fair Debt Collection Practices Act (FDCPA) by attempting to collect on balances that were not yet due.

The suit was filed by four Wisconsin residents who allegedly received letters from the defendant regarding their accounts with Synchrony Bank. According to the case, each of the defendant’s letters listed an inaccurate “amount now due” that matched the “total minimum payment due” on each plaintiff’s account statement – rather than the balance noted as “past due.” From the complaint:

“There is a difference between the ‘Amount Past Due’ and the ‘Total Minimum Payment Due.’ The ‘Total Minimum Payment Due’ is the sum of the ‘amount past due’ and the minimum payment, which is not itself due until the ‘Payment Due Date.’”

By seeking the “total minimum payment,” the defendant was attempting to collect more than the plaintiffs’ creditor indicated was due at the time, the suit explains.

The case further claims the defendant misled the plaintiffs by listing both a “total account balance” and “amount now due” in its letters, which allegedly confused the recipients as to which amount the company was trying to collect.