If you’ve ever had dealings with debt collectors, the name “Alliance One company” has probably crossed your path at some point. This company, also known as Alliance One Receivables Management Inc., is one of the largest debt buyers and collection agencies operating in the United States.
While Alliance One likes to portray itself as a professional organization simply trying to recover legitimate unpaid debts, the reality is that this company has a lengthy track record of underhanded tactics, legal violations, and mistreatment of consumers. Let’s take a closer look at the troubling reputation surrounding Alliance One and what you can do to protect yourself if they come knocking.
Alliance One’s Rap Sheet
A quick online search reveals a staggering number of consumer complaints, lawsuits, and regulatory actions taken against Alliance One over the years. Here are just a few highlights:
- In 2015, the Consumer Financial Protection Bureau (CFPB) took action against Alliance One for illegally inflating debts and attempting to collect amounts consumers didn’t actually owe. The company was fined $18.8 million.
- Alliance One has been sued numerous times in federal court for violations of the Fair Debt Collection Practices Act (FDCPA), which protects consumers from abusive and deceptive debt collection conduct.
- The Better Business Bureau has over 1,000 complaints on file against Alliance One, with the majority relating to issues like harassment, improper communication tactics, and attempts to collect invalid or inflated debts.
- Multiple state Attorneys General have taken action against Alliance One for unfair and deceptive business practices related to their debt buying and collection operations.
With a reputation like that, it’s clear that Alliance One is a company that consumers need to be extremely wary of dealing with. Their unscrupulous behavior seems to know no bounds when it comes to squeezing money out of people.
Your Rights When Alliance One Contacts You
If the alliance one company has reached out demanding you pay an outstanding debt, don’t just take their word for it. The FDCPA gives you important rights that Alliance One must follow.
First, you can request what’s called “debt validation” by sending Alliance One a letter within 30 days of initial contact. This requires them to provide evidence and documentation proving that the debt is truly yours and the amount being claimed is accurate.
Many times, debt buyers like Alliance One simply purchase huge portfolios of old, defaulted debts for pennies on the dollar with little to no verification of the debt details. Requesting validation forces them to produce real proof before they can continue collection efforts.
Additionally, the FDCPA prohibits debt collectors like Alliance One from engaging in harassment, making false or misleading statements, or using unfair practices when attempting to collect a debt. Some examples of illegal behavior include:
- Calling you before 8am or after 9pm
- Contacting you at work after being told you can’t receive calls there
- Using profane or abusive language
- Threatening violence, arrest, or legal action they don’t actually intend to take
- Failing to identify themselves as debt collectors in every communication
If Alliance One oversteps these boundaries, you may have grounds to sue them in federal court for FDCPA violations. Statutory damages of up to $1,000 are available, plus potential compensation for any actual damages incurred.
Defending Yourself If Alliance One Sues
Despite their checkered history, Alliance One is not afraid to file lawsuits against consumers in an attempt to collect debts. If you find yourself on the receiving end of a debt collection summons from Alliance One, don’t panic but also don’t ignore it.
Failing to respond to a lawsuit can result in Alliance One obtaining a default judgment against you for the full amount they claim you owe, plus interest, fees, and court costs. This can lead to your wages being garnished or your bank accounts being frozen.
Instead, you’ll need to file a formal “Answer” with the court within the timeframe specified in the summons (usually 20-30 days). An Answer is your legal response laying out your defenses against Alliance One’s allegations.
In your Answer, you’ll want to deny owing the debt until Alliance One can provide proper documentation and verification as required by law. You can also raise any violations of the FDCPA as counterclaims against the company.
For example, your Answer could state something like:”Defendant denies the allegations in the complaint. Plaintiff has failed to provide verification of the alleged debt as requested by Defendant pursuant to the Fair Debt Collection Practices Act. Defendant further alleges Plaintiff violated the FDCPA by engaging in harassment, making false statements, and using unfair practices when attempting to collect this debt.
“Don’t simply ignore a lawsuit from Alliance One or any other debt collector. Failing to respond can seriously damage your legal position and make it much harder to fight an unfair or unverified debt.
Taking Alliance One to Trial
If you properly Answer a lawsuit from Alliance One and they decide to proceed to trial, you’ll get the chance to scrutinize whatever evidence they claim proves you owe the debt. This is where Alliance One’s shady business model often falls apart.
Frequently, debt buyers purchase defaulted debts with little to no documentation from the original creditors. Alliance One may only have basic information like your name, an amount allegedly owed, and perhaps some account notes.
However, the burden will be on Alliance One at trial to provide complete verification of the debt’s origin, amount, chain of ownership, and their legal standing to pursue you for it. They’ll need to produce documentation like:
- The original creditor agreement or contract you signed
- An itemized account history from the original creditor showing all transactions
- Complete records of the debt’s sale and transfer to subsequent owners
- Calculations showing how interest, fees, and the current amount being sought were determined
If Alliance One is unable to produce this level of verification and documentation at trial, you have strong legal grounds to argue the debt is unenforceable and their case should be dismissed.
Alliance One has been caught many times in the past attempting to collect debts they couldn’t actually validate. Don’t let their intimidation tactics or aggressive legal posturing scare you into just rolling over.
The Alliance One Takeaway
No one enjoys being hounded by debt collectors, especially one with as poor a reputation for consumer mistreatment as Alliance One. However, you do have rights that this company must follow under the FDCPA and other consumer protection laws.
Don’t simply accept Alliance One’s demands at face value. Request complete debt validation and documentation. If they violate laws in their collection efforts, you may be able to sue them. And if they take you to court, make them prove with solid evidence that you truly owe what they claim.
Alliance One and other shady debt buyers are banking on consumers not understanding their rights or being too intimidated to fight back. By knowing the laws and standing up for yourself, you can level the playing field against this unscrupulous company.