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Plaintiffs Allege Allied Interstate Violated Fair Debt Collection Practices Act

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Case ID: 3726 | Credit / Debt | 10/04/2004

A class action has been filed against debt collector Allied Interstate, Inc. on behalf of individuals within the state of New York who received collection letters from Allied Interstate containing language alleged to violate the fair debt collection practices act. The case seeks damages, attorney’s fees and costs.

The case alleges that Allied interstate used a standard form collection letter which essentially stated that because of the small amount of the letter recipient’s debt, collection efforts were not cost justified and the debt would simply be written off as a bad debt and reported to the credit bureaus as such. Plaintiffs allege this language violates the Fair Debt Collection Practices Act, entitling them to statutory damages and costs.


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