Is A.R.M. Solutions Inc. Harassing You?

A.R.M. Solutions, Inc.

A.R.M. Solutions, Inc. (A.R.M.) provides third-party debt collection services for commercial, medical, propane and fuel, waste management, media subscription, and insurance industries. A.R.M. is based in Camarillo, California. In 2009, Forbes listed A.R.M. as one of the top ten (10) debt collection agencies.

The Consumer Financial Protection Board (CFPB) is a government agency charged with protecting consumers from unfair, deceptive or abusive debt collection practices. The CFPB has received 119 complaints against A.R.M. for unfair and abusive debt collection practices. Consumers complain that A.R.M. engages in the following practices:

• Attempting to collect a debt that is not owed by the consumer;
• Harassing consumers by making repeated and frequent calls;
• Threatening to harm credit if payment is not made; and
• Refusing to validate or provide proof of a debt.

In one example of A.R.M.’s unsavory debt collection practices, a consumer received threats to either make a payment or have their credit score lowered. The consumer received a letter from A.R.M. stating that they owed a debt for a magazine subscription; however, the consumer had never signed up for the subscription service or received any magazines. The consumer contacted the magazine company and was informed that the company had no information regarding the consumer in their database. The consumer then requested that A.R.M. provide proof of the debt. A.R.M. not only ignored the request for validation of the debt, but also continued to send letters threatening to report the debt to the credit bureaus. The consumer filed a complaint with the CFPB and the matter was subsequently resolved to the satisfaction of the consumer.

In this example, A.R.M. engaged in two separate violations of the Fair Debt Collection Practices Act (FDCPA) and the Rosenthal Fair Debt Collection Practices Act (RDCPA). The FDCPA expressly allows consumers to request a creditor or debt collector to send proof of the debt. Within five (5) days after its initial communication, the creditor or debt collector must send a notice, referred to as the G-Notice. A consumer then has thirty (30) days to dispute a debt and to request proof of the debt. By refusing to provide proof of the debt, A.R.M. violated the law.

Additionally, A.R.M. violated the law by threatening to report the consumer’s debt to the credit bureaus. The Fair Debt Collection Practices Act (FDCPA) and the Rosenthal Fair Debt Collection Practices Act (RFDCPA) prohibit debt collectors and creditors from threatening to report a debt to a credit bureau when the debt collector has no intention to do so. This is considered a false and misleading representation that is designed to intimidate or force the consumer to make a payment.

Creditors and debt collectors should be held accountable for these unethical and unlawful practices. If you are being harassed or subjected to any of these, deceptive, or abusive debt collection practices, it is time to hold A.R.M. accountable. Please contact our office for a free, no obligation consultation at 1-800-219-3577.