An Alabama consumer has recently sued the debt buyer and debt collector Arrow Financial Services, LLC for violating the Fair Debt Collection Practices Act (FDCPA) and state law including fraud. This case illustrates the danger when Alabama consumers settle with debt buyers who have sued them – it can be a wise move but this does graphically show the pain that these debt buyers can inflict on you.
Arrow sued our client and then told her if she paid half of the debt Arrow would remove the account (tradeline) from her credit report and would dismiss the case. She upheld her end of the agreement but Arrow requested and received a default judgment against her and has kept the account on her credit reports. Arrow has also pulled her credit reports, which we believe it has no right to do unless it is collecting (and there is nothing to collect – this debt was settled), and has seen the judgment showing up on her credit reports.
We have previously talked about how unfair actions of debt collectors violate the FDCPA. These actions certainly seem unfair to us. We have also seen how untrue statements violate the FDCPA – these statements appear to us to be false and if so they violate Alabama state law prohibiting misrepresentations (lying) and suppressions (hiding the truth).
Remember, if you are dealing with a debt collector, be careful. Guard yourself. Check your credit reports at least once a year. Fortunately when our client realized she had been tricked, she took action. You should do the same – protect yourself but then take action if you have been wronged.
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