Allied Interstate Allegedly Violated Federal Debt Collection Law |
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A national class action has been filed against collection agency Allied Interstate, Inc. alleging that the company violated federal law in its efforts to collect outstanding debts for its clients. The action asserts that Allied's actions violate the federal Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from engaging in abusive, deceptive and unfair practices. Class members are seeking statutory damages available under the act, declaratory and injunctive relief, and attorneys fees and costs.
The action's allegations revolve around letters that were sent to class members demanding payment for outstanding debt. Under the FDCPA, a debtor has 30 days in order to dispute a debt once contacted by a collection service. Any effort to make a final collection within this 30-day period is a violation of the act. This action alleges that Allied made demand for final payment within 13 days of issuing the initial demand letter. The language of Allied's second letter demanded payment "today." The action contends that Allied has engaged in this activity in a systematic manner and the class of individuals who may have experienced the same unlawful conduct is potentially large.
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