A proposed class action filed in Wisconsin alleges Asset Recovery Solutions, LLC (ARS) unlawfully included “confusing and misleading” language pertaining to a debt settlement offer in a collection notice sent to the plaintiff. In the situation laid out in the complaint, the original creditor, University of Phoenix, referred the plaintiff’s debt to the defendant for collection. The collection notice offering the plaintiff an option to settle this debt allegedly failed to note whether the agreed-upon payment would actually settle the account in full with both Asset Recovery Solutions and the University of Phoenix.
“Under a reasonable interpretation of [the settlement language], payment of the ‘settlement’ would result in ARS closing its account and returning the remaining balance (i.e. 65 percent of the balance) to Phoenix, which would be within its rights to continue collection efforts,” court documents note.