A debt collection
agency is in hot water after a recent court decision found that the firm had violated the Fair Debt Collection Practices Act when attempting to track down money from unpaid accounts.
The Central Valley Business Times reports the 9th U.S Circuit Court of Appeals ruled against Arrow Financing Services after it sent mail to 40,000 California residents.The court ruled that the company had violated the FDCPA because the debts, which were from unpaid health club fees, were more than seven years old. "In 2004, Arrow attempted to collect on this portfolio of debts by sending substantially identical letters to nearly 40,000 California residents," the court described in a document, as reported by the news source. "One of those residents was Johnny Gonzales… The letter informed Mr. Gonzales that he owed a 'past due balance' to Holiday Spa of California." The Fair Debt Collection Practices Act was first passed in 1978 as Title VII of the Consumer Credit Protection act and seeks to make those in the industry comply with standards.