IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

Sabrina Montana, )

)

Plaintiff, )

)

v. ) No. 12 C 513

)

ARS National Services, Inc., d/b/a ) 

Associated Recovery Systems, Inc., a )

California corporation, )

)

Defendant. ) Jury Demanded

COMPLAINT

Plaintiff, Sabrina Montana, brings this action under the Fair Debt Collection 

Practices Act, 15 U.S.C. § 1692, et seq. ("FDCPA"), for a finding that Defendant’s debt 

collection actions violated the FDCPA, and to recover damages for Defendant’s 

violations of the FDCPA, and alleges:

JURISDICTION AND VENUE

1. This Court has jurisdiction pursuant to § 1692k(d) of the FDCPA, and 28 

U.S.C. § 1331.

2. Venue is proper in this District because: a) part of the acts and 

transactions occurred here; and, b) Defendant resides and transacts business here.

PARTIES

3. Plaintiff, Sabrina Montana ("Montana"), is a citizen of the State of 

Pennsylvania, from whom Defendant attempted to collect a delinquent consumer debt

owed to Bank of America, despite the fact that she was represented by the legal aid 

attorneys at the Chicago Legal Clinic's Legal Advocates for Seniors and People with 

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Disabilities program ("LASPD"), located in Chicago, Illinois.

4. Defendant, ARS National Services, Inc., d/b/a Associated Recovery 

Systems (“ARS”), is a California corporation that acts as a debt collector, as defined by 

§ 1692a of the FDCPA, because it regularly uses the mails and/or the telephone to 

collect, or attempt to collect, delinquent consumer debts. Defendant ARS operates a 

nationwide debt collection business and attempts to collect debts from consumers in 

virtually every state, including consumers in the State of Illinois. In fact, Defendant ARS 

was acting as a debt collector as to the delinquent consumer debt it attempted to collect 

from Plaintiff.

5. Defendant ARS is authorized to conduct business in Illinois, and maintains 

a registered agent here, see, record from the Illinois Secretary of State, attached as 

Exhibit A. In fact, ARS conducts business in Illinois.

6. Moreover, Defendant ARS is licensed as a collection agency in Illinois, 

see, record from the Illinois Division of Professional Regulation, attached as Exhibit B. 

In fact, ARS acts as a debt collection agency in Illinois.

FACTUAL ALLEGATIONS

7. Ms. Montana is a disabled woman, with limited assets and income, who 

fell behind on paying her bills. When Defendant ARS began trying to collect a Bank of 

America debt from Ms. Montana, she sought the assistance of the legal aid attorneys at 

the Chicago Legal Clinic’s LASPD program, regarding her financial difficulties and 

Defendant ARS’s collection actions. 

8. Accordingly, on July 25, 2011, one of Ms. Montana's attorneys at LASPD 

informed ARS, in writing, that Ms. Montana was represented by counsel, and directed 

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ARS to cease contacting her, and to cease all further collection activities because Ms. 

Montana was forced, by her financial circumstances, to refuse to pay her unsecured 

debt. Copies of this letter and fax confirmation are attached as Exhibit C. 

9. Nonetheless, Defendant ARS sent a collection letter, dated September 9, 

2011, directly to Ms. Montana, in which it continued to demand payment of the Bank of 

America debt. A copy of this letter is attached as Exhibit D.

10. Accordingly, on December 13, 2011, Ms. Montana's LASPD attorney had 

to send Defendant ARS another letter, directing it to cease communications and to 

cease collections. Copies of this letter and fax confirmation are attached as Exhibit E.

11. Defendant ARS’s collection actions complained of herein occurred within 

one year of the date of this Complaint. 

12. Defendant ARS’s collection communications are to be interpreted under 

the “unsophisticated consumer” standard. See, Gammon v. GC Services, Ltd. 

Partnership, 27 F.3d 1254, 1257 (7th Cir. 1994).

COUNT I

Violation Of § 1692c(c) Of The FDCPA --

Failure To Cease Communications And Cease Collections

13. Plaintiff adopts and realleges ¶¶ 1-12.

14. Section 1692c(c) of the FDCPA prohibits a debt collector from 

communicating with a consumer after a direction to cease communications, and from 

continuing to demand payment of a debt that the consumer has indicated that they 

refuse to pay. See, 15 U.S.C. § 1692c(c).

15. Here, the letter from Ms. Montana's, agent, LASPD, told Defendant ARS

to cease communications and cease collections (Exhibit C). By continuing to 

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communicate regarding this debt and demanding payment (Exhibit D), Defendant ARS

violated § 1692c(c) of the FDCPA.

16. Defendant ARS’s violation of § 1692c(c) of the FDCPA renders it liable for 

actual and statutory damages, costs, and reasonable attorneys’ fees. See, 15 U.S.C. § 

1692k.

COUNT II

Violation Of § 1692c(a)(2) Of The FDCPA --

Communicating With A Consumer Represented By Counsel

17. Plaintiff adopts and realleges ¶¶ 1-12.

18. Section 1692c(a)(2) of the FDCPA prohibits a debt collector from 

communicating with a consumer if the debt collector knows the consumer is 

represented by an attorney with respect to such debt and has knowledge of, or can 

readily ascertain, such attorney’s name and address. See, 15 U.S.C. § 1692c(a)(2). 

19. Defendant ARS knew that Ms. Montana was represented by counsel in 

connection with her debts because her attorneys at LASPD had informed Defendant, in 

writing (Exhibit C), that she was represented by counsel, and had directed Defendant 

ARS to cease directly communicating with her. By directly sending Ms. Montana a 

collection letter (Exhibit D), despite being advised that she was represented by counsel, 

Defendant ARS violated § 1692c(a)(2) of the FDCPA.

20. Defendant ARS’s violation of § 1692c(a)(2) of the FDCPA renders it liable 

for actual and statutory damages, costs, and reasonable attorneys’ fees. See, 15 

U.S.C.§1692k.

PRAYER FOR RELIEF

Plaintiff, Sabrina Montana, prays that this Court:

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1. Find that Defendant ARS’s debt collection actions violated the FDCPA;

2. Enter judgment in favor of Plaintiff Montana, and against Defendant ARS, 

for actual and statutory damages, costs, and reasonable attorneys’ fees as provided 

by§1692k(a)of the FDCPA; and,

3. Grant such further relief as deemed just.

JURY DEMAND

Plaintiff, Sabrina Montana, demands trial by jury.

Sabrina Montana,

By: /s/ David J. Philipps_________

One of Plaintiff’s Attorneys

Dated: January 24, 2012

David J. Philipps (Ill. Bar No. 06196285)

Mary E. Philipps (Ill. Bar No. 06197113)

Philipps& Philipps, Ltd.

9760 S. Roberts Road

Suite One

Palos Hills, Illinois 60465

(708) 974-2900

(708) 974-2907 (FAX)

davephilipps@aol.com

mephilipps@aol.com

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