National Class Action Challenges Allianceone Receivables Collection Practices |
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A national class action has been filed in New York against Allianceone Receivables Management, Inc., formerly known as Triadvantage Credit Services, Inc. The action is brought on behalf of all U.S. residents who have received a collection letter from Allianceone or Triadvantage that contained language overshadowing the statutorily required notice to consumers of their right to dispute an alleged debt under collection. The action is brought under the federal Fair Debt Collections Practices Act and seeks statutory damages, injunctive and declaratory relief.
According to consumers, Allianceone and Triadvantage have violated the federal Fair Debt Collection Practices Act through language contained in their collection letters. The consumers allege that although the companies have included the required notice of consumers' right to dispute the validity of the debt under collection, they have failed to include relevant information regarding consumers' rights. In particular, the consumers claim that the notice attached to Allianceone and Triadvantage's letters fails to notify them of their right to dispute a portion of the alleged debt. According to consumers, this alleged failure overshadows the required notice and has a misleading, unfair and coercive effect. Under the act, any such language that overshadows the validity notice, or that has an unfair, misleading or coercive effect is strictly forbidden. The consumers claim that Allianceone and Triadvantage have sent thousands, if not tens of thousands of form collection letters containing this allegedly defective notice and that the class is very numerous.
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