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Indiana Consumers Target Capital Recovery Associates for Unfair Collection Attempts

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Case ID: 3076 | Credit / Debt | 01/22/2004

A statewide class action has been filed in Indiana against Capital Recovery Associates, Inc. who operate under the name CRA Security Systems. The action is brought on behalf of all Indiana residents who received a form type collection letter demanding immediate payment of the consumers’ alleged debt. The action is brought under the federal Fair Debt Collection Practices Act and seeks statutory damages as well as injunctive and declaratory relief.

According to consumers, Capital Recovery used language in its initial collection letters that was confusing and deceptive. Federal law requires that all collection services include a notice in their initial collection letters that informs consumers of their right to investigate the validity of a debt within 30 days. Although Capital Recovery's letter contained this notice, consumers allege that other language in the letter overshadowed the notice and rendered it ineffective. Specifically, the letters requested immediate attention by
remitting payment. Consumers allege that by demanding immediate attention and payment, they were unable to determine if they were given 30 days to investigate the validity of the debt, or if they were required to pay immediately. Under the Fair Debt Collection Practices Act, any unfair, misleading or intimidating language is forbidden in collection letters or other forms of communication. The consumers allege that the language used by Capital Recovery fulfills this standard and entitles them to statutory damages. According to consumers the potential class is quite numerous, numbering in the thousands, and perhaps tens of thousands.


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