ARS National Services Collection Notice ‘Likely to be Misconstrued,’ Class Action Claims

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Alleged violations of the Fair Debt Collection Practices Act (FDCPA) are at the heart of a proposed class action case against ARS National Services, Inc. The plaintiff claims in the suit that the California-based debt collector mailed him a collection notice in January 2017 that presented a current balance without disclosing whether the amount may increase due to accruing interest and fees, and would likely be misconstrued by most consumers. Though the plaintiff’s debt was in fact increasing due to interest stipulated upon in a contract the current creditor, the lawsuit argues ARS still had an obligation to convey such information.

“To the extent that the creditor or defendant intended to waive the automatically accrued and accruing interest, it was required to disclose that in the most conspicuous of terms,” the complaint reads, noting a consumer may be left unsure as to how much would need to be paid to fully satisfy his or her obligation.