Indiana Residents Challenge Account Receivable Collections Tactics |
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A statewide class action has been filed in Indiana against collections specialist Account Receivable Collections, LLC. The action is brought on behalf of all Indiana consumers who received an initial collection letter from Account Receivable that demanded immediate payment of their debt. The action is brought under the Fair Debt Collection Practices Act and seeks statutory damages as well as injunctive and declaratory relief.
According to consumers, Account Receivable's initial collection letters violate the federal Fair Debt Collection Practices Act because they contain language that is misleading, unfair and deceptive. Specifically, consumers allege that the letters demand immediate payment of consumers alleged debts. This language, consumers assert, overshadows language required under the Fair Debt Collection Practices Act. Under the Act, consumers must be informed of their right to dispute the validity of the debt under collection within 30 days of receiving an initial collection communication. Although Account Receivable's letters contained this language, consumers claim that the language demanding immediate payment was misleading and led to confusion as to whether the debt had to be paid immediately, or if it could be disputed within 30 days.
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