Georgia Redd vs Arrow Financial Services

On March 31 2004, Ms. Georgia Redd brought a class action lawsuit against Arrow Financial Services. The case of Georgia Redd vs Arrow Financial Services was heard on the United States District Court, N.D. Illinois, Eastern Division.

The lawsuit case of Georgia Redd vs Arrow Financial Services

Ms. Georgia Redd filed a class action lawsuit against Arrow Financial Services for violations of the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692e, 1692e(2), 1692e(8), and 1692e(10). This lawsuit against the debt collector was filed in connection with the collection of debts that were more than seven years old. This lawsuit brought by Ms. Georgia Redd against Arrow Financial Services was heard in court. The motion for class certification was granted.

The story of Georgia Redd and Arrow Financial Services LLC

Ms. Georgia Redd had a debt that was 12 years old from the car loan which she defaulted on the payments of in 1990. The car was repossessed and Georgia Redd's debt was charged off.

Arrow Financial Services LLC is a limited liability company that acted as a collection agency and purchased consumer debts at a portion of the face value for the opportunity to enforce the debts against the consumers. In this case, Arrow Financial Services LLC purchased Ms. Georgia Redd's debt of the car loan.

Around October 18 2002 (12 years later), Georgia Redd received a letter from Arrow Financial Services informing her that her debt had been sent to a debt collection agency and that the outstanding balance was $9,887.41. Arrow Financial Services LLC also offered Ms. Georgia Redd a settlement of 45% of the full balance of the debt which she owed if the repayment was made in one payment by November 20, 2002.

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