The Fair Debt Collection Practices Act (FDCPA) was passed to prevent abuses in the debt collection industry and to ensure that collectors that do not commit abuses are not disadvantaged. The complaint for this class action alleges that Allied Interstate, LLC violated the FDCPA in two ways: in naming a current total amount of the debt that was not rational, and in naming a default date that makes the debt no longer enforceable but that does not reveal that the debtor cannot be sued at this point.
The plaintiff in this case, Angela Ragsdale, allegedly incurred a consumer debt to Navient for a personal student loan. At some point, the complaint suggests, Navient assigned the debt to Allied for collection.
Both of the violations of the FDCPA alleged occur in a collection letter Allied sent to Ragsdale.
The Conflicted Balance problem arose from several points stated in the letter. These points stated that Ragsdale owed $10, 248.54; that she was charged $0.00 in interest and $0.00 in fees; and that she paid or was credited $3,347.57 on the debt. Then, the complaint alleges, it stated that the “Total amount of the debt now” was $13,596.11.
The complaint alleges that this is “nonsensical.” It alleges, “It is not possible for the current balance to be more than the ‘You Owed’ balance is no interest and/or fees were charged, but payments or credits were made.”
According to the complaint, the letter has multiple meanings and could be interpreted more than one way, meaning, it says, that it would be “confusing, deceptive and misleading to the least sophisticated consumer as to the amount due.”
The Statute of Limitation problem, the complaint claims, is based on the fact that the default date was October 31, 2016. States’ rules on statutes of limitations on defaulted debts vary, but the complaint alleges that Ragsdale had been a resident of Pennsylvania, and that the statute of limitation had expired on the debt.
“Accordingly,” the complaint alleges, “the Letter should have advised [Ragsdale] that she could not be sued and that the debt was unenforceable.”
The class for this action is
- All individuals with addresses in Utah
- To whom Allied sent an initial collection letter trying to collect a consumer debt,
- Which letter was sent on or after July 28, 2021 and on or before August 18, 2022, and
- Who are either in the Conflicted Balance Subclass or the Statute of Limitation Subclass below.
In the Conflicted Balance Subclass, the letter sets forth
- A “You Owed” amount of the debt,
- No additional amounts charged since the “You Owed” date,
- Reflecting payments and credits made since charge-off, and
- Then lists the total balance as being more than the “You Owed” amount.
In the Statute of Limitation Subclass, the letter sets forth
- A default date precluding enforceability of the debt according to the applicable statute of limitations,
- But does not disclose that the debtor cannot be sued.
Topic: Loans
Most Recent Case Event
Allied Interstate Debt Total, Statute of Limitations Utah FDCPA Complaint
July 28, 2022
The Fair Debt Collection Practices Act (FDCPA) was passed to prevent abuses in the debt collection industry and to ensure that collectors that do not commit abuses are not disadvantaged. The complaint for this class action alleges that Allied Interstate, LLC violated the FDCPA in two ways: in naming a current total amount of the debt that was not rational, and in naming a default date that makes the debt no longer enforceable but that does not reveal that the debtor cannot be sued at this point.
Allied Interstate Debt Total, Statute of Limitations Utah FDCPA ComplaintCase Event History
Allied Interstate Debt Total, Statute of Limitations Utah FDCPA Complaint
July 28, 2022
The Fair Debt Collection Practices Act (FDCPA) was passed to prevent abuses in the debt collection industry and to ensure that collectors that do not commit abuses are not disadvantaged. The complaint for this class action alleges that Allied Interstate, LLC violated the FDCPA in two ways: in naming a current total amount of the debt that was not rational, and in naming a default date that makes the debt no longer enforceable but that does not reveal that the debtor cannot be sued at this point.
Allied Interstate Debt Total, Statute of Limitations Utah FDCPA Complaint