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How to Resolve Debt with American Recovery Service

George Simons | January 29, 2025

Fact-checked by Patrick Austin, J.D.

Patrick Austin
Attorney from George Mason
Patrick Austin, JD

Patrick Austin is a licensed attorney with a background in data privacy and information security law. Patrick received his law degree at George Mason University's Antonin Scalia Law School, where he served as the Editor-in-Chief for the National Security Law Journal.

George Simons
Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: If American Recovery Service is contacting you about a debt, you can resolve it by validating it, responding to any pending lawsuits with a written Answer, negotiating to settle for less, and getting the agreement in writing. Use Solo to simplify this process.

Receiving repeated phone calls and letters from a debt collection company like American Recovery Service likely means you may be feeling stressed out and anxious about your financial future. This is understandable. Most people do not expect to receive phone calls and letters from a debt collection company.

If you find yourself in this situation, do not give up hope. It is important to remember that you have legal rights and protections when it comes to dealing with a debt collector like American Recovery Service. There are also certain defenses you can raise if American Recovery Service has sued you to try and collect on an alleged delinquent debt. These affirmative defenses could help you win in court or get you in a better position to settle the debt outside of court.

Settle debt with American Recovery Service

You can negotiate debt settlement at any stage of the collections process. SoloSettle makes it easy.

Settle with SoloSettle

What is American Recovery Service?

American Recovery Service is a debt collection company based in California. The company was formed in 1986 and specializes in issuing demand letters and debt collection.

Who does American Recovery Service collect for?

American Recovery Service specializes in the collection of debts for various companies, including banks, hospitals, auto loan companies, utilities, and so forth.

Negotiate debt Settlement with American Recovery Service

Most debt collectors are open to the idea of negotiating a settlement amount or a repayment plan with debtors instead of going through a time-consuming and expensive court process. If they agree to negotiate, ensure that the agreement is in writing and that you honor your end of the bargain. Here are three steps you can take to try and settle your debt with American Recovery Service:

Step 1: Figure out how much you can pay toward the amount owed

Prior to commencing debt settlement negotiations, make sure to calculate how much you can actually afford to pay in a lump sum. Your calculation should take into consideration your other living expenses. If you don’t have sufficient funds to make a lump sum payment, try to calculate what you could pay in installments.

Step 2: Reach out to American Recovery Service to engage in debt settlement negotiations

Once you’ve calculated how much you can reasonably repay toward the amount owed, the next step is to try and negotiate a settlement. Start by offering a lower percentage of the total amount owed, typically somewhere between 30% and 50% of the balance. Be prepared to negotiate upward. If possible, offer a lump sum payment as creditors are more likely to accept a lower amount if they receive an immediate payment.

Step 3: Memorialize the debt settlement agreement in writing

Before making a payment toward the debt, ensure you receive a written agreement outlining the terms of the settlement. This is known as a debt settlement agreement. The agreement should clearly state that the payment will settle the debt in full and that they will not pursue any further legal action or collections.

To learn more about these debt settlement steps, watch our video guide below:

If you decide to engage in debt settlement negotiations, consider using smart tools to help you with the debt settlement negotiation process, like SoloSettle, which is a software that sends and receives settlement offers for you until you come to an agreement with the collector or creditor. Innovative tools such as SoloSettle can make it much easier to fly solo in the credit card debt settlement process, which can help you both save money and resolve your debts more efficiently than litigation.

Read American Recovery Service reviews online

If you’re looking for info on what people have shared about their debt collection experience with American Recovery Service, then take some time to check out these real online reviews:

It’s fair to say the online reviews for American Recovery Service are not all glowing and positive. Nevertheless, the mixed reviews should not stop you from engaging with ARS to try and reach a resolution to your debt issue.

Of course, if calling a debt collector to discuss a debt collection matter sounds terrifying, then try using SoloSettle to negotiate online and resolve your debt through our innovative digital settlement platform.

Settle with SoloSettle

Make an Offer

You have rights under the FDCPA

If you’ve been contacted by :

  • Using inappropriate and profane language during phone calls
  • Calling consumers prior to 8:00 a.m. or after 9:00 p.m.
  • Making baseless threats such as claiming they can “destroy” your credit or that they can arrest you for breaking the law
  • Calling consumers at their place of work
  • Contacting consumers multiple times per day or per week

Knowing your rights when dealing with debt collectors will keep them compliant with the law and ensure you are treated fairly. Sadly, most consumers do not know their rights. You should learn more about FDCPA Violations to prep yourself for engaging with debt collectors.

You have rights and protections under the Fair Debt Collection Practices Act

As mentioned earlier, consumers have the ability to turn the proverbial table and take legal action against a debt collector. The statutory mechanism affording consumers the ability to initiate legal action is the Fair Debt Collection Practices Act (FDCPA). The FDCPA is a federal law enacted in 1977 with the objective of protecting consumers from being harassed and threatened by debt collectors who were using abusive and unethical tactics to try and extract payments for delinquent debts. Under the FDCPA, a consumer possesses the following rights and legal protections:

  • Dispute a debt and request no further contact from a collection agency
  • Tell the debt collector not to call them at work if such calls are not permitted by the employer
  • Request proof that a debt exists and the collector is authorized to request payment
  • Be represented by an attorney in a debt resolution case

Advice for Beating American Recovery Service in Court

If you are sued by American Recovery Service, you probably want insight and advice on how to prevail in court. Fortunately, there are certain actions you can take to position yourself for victory in court. For example, simply responding to the Complaint will set you apart from most consumers.

Debt collection lawsuits generally begin when the debt collector (i.e. American Recovery Service) filing a formal Summons and Complaint alleging you owe a specific amount of money (i.e. the unpaid debt). The vast majority of consumers opt to ignore the Complaint and do nothing. This is a big mistake since it means American Recovery Service will simply file a motion requesting the Court enter a default judgment against you. If the Court grants the default judgment, American Recovery Service will be empowered to take the following actions against you:

  • Garnish your wages
  • Place a lien on your personal property (e.g., car)
  • Freeze the money currently in your bank account

Do not let this happen to you. Take action and file a formal response to the Complaint. In your response, take the time to highlight some of the glaring deficiencies and shortcomings in American Recovery Service's lawsuit. For example, you should request that American Recovery Service produce evidence (e.g., documents) showing the following basic information:

  1. You are the person in fact responsible for repaying the alleged debt;
  2. American Recovery Service possesses the right to take legal action against you; and
  3. You owe the specific amount listed in the Complaint

Requesting evidence to establish these basic facts is important because it is not uncommon for these large debt collection companies to sue the wrong person or to lack basic financial documents that show you actually owe the alleged debt.

If applicable, you should also consider the expiration of the statute of limitations as an affirmative defense. The statute of limitations is essentially the amount of time someone has to take legal action against another person or company. If the facts of your case indicate that American Recovery Service filed a lawsuit after the expiration of the statute of limitations, you could file a motion to have the debt collection lawsuit dismissed. SoloSuit can help you navigate this process and in completing the necessary documents that should be filed with the court.

SoloSuit files for you.

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Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

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Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

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Statute of limitations on debt state guides

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Check the status of your court case

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How to stop wage garnishment in your state

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Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

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Civil law legal definitions

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