Asset Recovery Solutions, Velocity Investments Sued Over Alleged Litigation Threats

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Asset Recovery Solutions, LLC and Velocity Investments, LLC have been named as defendants in a proposed class action that accuses the debt collectors of unlawfully threatening a consumer with litigation. According to the case, the defendants sent the plaintiff a collection letter regarding an alleged debt that contained the following statements:

“We wish to notify you that your creditor is preparing to refer your account to a law firm to review their ability to successfully recover your unpaid balance through litigation. If you contact our office and establish a satisfactory resolution your creditor will not refer your account to COUCH CONVILLE AND BLITT, or an associated law firm in your state for review at this time.”

The lawsuit claims this language is “threatening and coercive,” meant only to pressure the plaintiff into paying off her debt as soon as possible. Furthermore, the complaint argues that the defendants’ statements overshadowed the included notice regarding debt disputes and attempted to dissuade the plaintiff from exercising her rights under the Fair Debt Collection Practices Act.