November 13, 2018 / 10:35 PM / in 4 months

Judge rejects arbitration of Florida debt collection lawsuit

California-based ARS National Services must face a proposed class action accusing it of calling consumers without identifying itself as a debt collector, a federal judge in Florida ruled, rejecting the company’s bid to force the lawsuit into arbitration.

U.S. District Judge Kenneth Marra in West Palm Beach on Tuesday said ARS waived arbitration by litigating the case for seven years before seeking arbitration. The company’s lawyers said they did not know until recently that consumers’ debt was covered by an arbitration agreement, but Marra said the lawyers should have explored the possible existence of an agreement sooner.

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