The class has been certified in an action filed against Arrow Financial Services, LLC, on behalf of all consumers with a Connecticut address from whom Arrow sought to collect on a defaulted debt between March 20, 2001, and March 20, 2002. The action alleges that the agency violated the Connecticut Consumer Collection Agency Act and the federal Fair Debt Collection Practices Act by seeking to collect a purchased debt that had previously been charged off by the original lender. Persons eligible to take part in the action should contact attorneys for the class for more information.

The named plaintiff, Luciano Petrolito, alleges that he entered into a credit card agreement with First Premier Bank in 1997 for personal, family, and household use. In 2001, after no payments had been made on Mr. Petrolito's account for at least two years and after First Premier had "charged it off," Arrow Financial allegedly purchased it for "pennies on the dollar." Arrow allegedly sued Petrolito to collect the balance owed on the credit card account. The action alleges that Arrow's lawsuit against Mr. Petrolito falsely claimed that it was in the business of issuing and maintaining credit card accounts.

The present action alleges that Arrow's practice and policy is to file lawsuits seeking to collect the balance due on debts it has purchased from creditors who have charged off the debt, to forward the debt to Connecticut attorneys for collection, up to and including litigation, and to seek recovery based on a form complaint which misrepresents the character and legal status of the obligation.

The action alleges that Arrow sent 675 initial letters between March 28 and April 1, 2001, alone, and that collections started after March 28 on 9,759 additional accounts.