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How to Settle Debt With ARstrat

Dena Standley | September 24, 2024

Dena Standley
Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

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.

Fact-checked by Greg Anjewierden, J.D.

Greg Anjewierden
Attorney and CEO of Debtbrief
Greg Anjewierden, JD

Greg Anjewierden is the Founder and CEO of Debtbrief, where he empowers consumers sued by debt collectors with tools, legal representation, and self-defense strategies. With over a decade of legal experience, including as a former creditor’s rights attorney, Greg is committed to advocating for consumer rights.

Beating ARstrat in court feels like this ^^

Summary: ARstrat is a debt buyer and collection agency that relies on questionable collection tactics to collect debts. But SoloSuit can help you respond to ARstrat's collection attempts and win in court if you’ve been sued.

Debt collectors are just the worst. If you are in debt, you know how stressful it can be to have debt collectors constantly breathing down your neck.

Does the example below sound familiar?

"ARstrat continues to call my place of employment. I have told them that it is a place of business and not to call. They state they don't have my phone number, but my records are updated at the medical facility to which I was making payments for co-pay. The person continued to ask for my birth date, address, and cell number."

It can be frustrating if you are facing a similar situation with ARstrat but don't panic because SoloSuit has a steel-proof plan to help you beat them at their game. But first,

What is ARstrat, and how does it work?

ARstrat is a Houston-based debt collection agency. Established in 2007, it is a leading provider of bad debt collection and resolution services in the healthcare industry. Its customers are healthcare organizations, hospitals, academic healthcare centers, and clinics.

A debt collection agency like ARstrat gets your information and the details of your debt in one of two ways:

  1. Service providers/lenders hire them to collect debts and earn fees when you pay.
  2. They purchase the debt from your original creditor (healthcare provider) at a discounted rate, often for pennies on the dollar, and net all profit from your payments.

So, if you’ve never heard of ARstrat and they claim you owe a debt, that may very well be true. Debt buyers like ARstrat cause a lot of confusion for consumers who have never heard of them. Many think it could be a scam, but ARstrat is not.

Here are the contact details for ARstrat:

ARstrat, LLC
NMLS# 1456896
T: 888-250-6379
14141 Southwest Freeway,
Suite 300,
Sugar Land, TX 77478

Know your rights when ARstrat contacts you

If you're considering paying ARstrat, ask for proof of the debt they claim. A collection agency must show you documentation confirming the debt before collecting it per the Fair Debt Collection Practices Act. The FDCPA prevents unfair or abusive debt collection practices, and you have the right to dispute the debt.

Do not let the collection agency walk over you with threats of a lawsuit. Make them prove you are liable for the debt. Sure, you may owe them money, but what is the amount they claim? Do they have the correct account information? Once contacted, send a Debt Validation Letter to ARstrat within 30 days. If ARstrat lacks sufficient evidence to validate the debt, it will legally have to cease collection efforts.

There are other rules that ARstrat must follow. These include:

  • ARstrat cannot call you before 8 a.m. or after 9 p.m.
  • ARstrat cannot discuss your debt with your friends and family other than your spouse.
  • ARstrat cannot call you at your workplace.
  • ARstrat cannot use vulgar or threatening language to intimidate you into paying a debt.
  • ARstrat cannot continue calling you if you have requested to have all communications in writing.
  • ARstrat cannot threaten to take legal action that they are unable, or do not plan, to take.
  • ARstrat cannot pretend to be associated with the US government.

If you have experienced any of these debt collection tactics when communicating with ARstrat, you may be eligible for compensation. You should report the unfair practices to the FTC, CFPB, or your state’s attorney general.

How do I respond to a debt lawsuit if ARstrat sues me?

ARstrat buys the debt, so you need to see proof they have the right to sue you. Suing doesn't mean you should fold. In the long run, you may save a large amount of money. Many consumers are surprised to learn that debt collectors often lose their cases when consumers fight back.

When you get sued for a debt, you receive a court Summons and Complaint. You have up to 35 days to respond to the Summons and Complaint before you lose by default. Losing by a default judgment is the worst-case scenario, because it gives ARstrat the right to garnish your wages and put liens on your property.

You must respond to the Summons and Complaint with a written Answer. Use these three steps to Answer you debt collection lawsuit against ARstrat:

  1. Answer each claim listed in the Complaint.
  2. Assert your affirmative defenses.
  3. File the Answer in court, and send a copy to ARstrat's lawyers.

Draft and file your Answer with SoloSuit in just 15 minutes.

Below, we break down each of these steps a little further. If you prefer not to read, check out this video instead:

1. Answer each claim listed in the Complaint

The Summons and Complaint are legal documents that initiate a lawsuit. The Summons notifies you of the lawsuit, while the Complaint lists the specific claims against you.

In your Answer, you should focus on responding to each claim listed in the Complaint. Each of your responses should correspond to the number of the claim from the Complaint.

Use one of the following replies to respond to the Complaint’s claims:

  • Admit
  • Deny
  • Deny due to lack of knowledge

Admitting is like saying, “this is true.” On the other hand, when you deny a claim, you are requesting proof.

When answering, be very cautious about what you say. Most attorneys recommend that you deny as many claims as possible, because it will force ARstrat to prove everything. If you admit everything, the court will likely rule in favor of ARstrat.

2. Assert your affirmative defenses

In a lawsuit, an "affirmative defense" is a statement of facts made by the defendant (you) that, if true, will defeat the plaintiff's (ARstrat) claim. Civil Procedure Rules 8(c) outlines affirmative defenses that can be used in a lawsuit.

Affirmative defenses should be considered when drafting your Answer.

Creditors make mistakes and if they’ve sued the wrong person, you have a strong affirmative defense. ARstrat may be suing you because you have a common name, and they’ve genuinely made a mistake when tracking down the debtor. Another reason might be that the debt belongs to someone else in your household, or an ex-spouse (especially if the debt was incurred after a divorce). Clearly state the facts behind your affirmative defense and any proof you have that the debt does not belong to you.

Another affirmative defense arises when the wrong debt amount is listed. Take a look at your records. If you have concrete evidence that you owe $800, but ARstrat states that you owe $1,400 for the debt, the case could be dismissed after you file your Answer, or you may only have to pay the amount you believe you owe (it's probably unlikely to get a full dismissal if you admit you owe some amount).

Additionally, include your affirmative defenses in plain and short terms. The most common defense is the statute of limitations, which limits ARstrat's ability to sue you if the debt is past a certain age. How? Depending on your state's statute of limitations, a court may dismiss the Complaint if it's filed after the statute has expired.

Let’s take a look at an example.

Example: Adam is being sued for an old credit card debt of $500 in Texas. He doesn’t remember much about the debt, so he does some investigating on SoloSuit’s blog and learns that the statute of limitations on credit card debt is four years in Texas. He finds out that no activity has been made on his account for more than six years. Adam uses SoloSuit to draft and file an Answer to the lawsuit. In his Answer, Adam uses the expired statute of limitations as a defense. A few months later, the case gets dismissed.


3. File the Answer in court, and send a copy to ARstrat's lawyers

After completing your Answer, file the document with the court and serve ARstrat's attorney with a copy of your Answer by mail. You must mail a copy to ARstrat's attorney on the same date you filled in on the Certificate of Mailing. Remember to keep a copy for yourself.

The deadline for filing your Answer is short. To make the process as quick and straightforward as possible, use SoloSuit to speed up the process. Complete your Answer online in minutes by answering a few questions.

SoloSuit can file your Answer for you in all 50 states.

Negotiate a lump-sum settlement with ARstrat.

Most collectors readily agree to a lump-sum settlement if you can afford it. Consider sending ARstrat an offer with SoloSettle. You can offer a lump sum to pay off your debt for less than you owe. No binding rule applies to all collection agencies, but most creditors may collect 75% to 80% of what you owe.

Settle with SoloSettle

Make an Offer

One-third or less might be acceptable, while others will take 50%. For example, if you owe $600 and suggest paying $300 on the spot to settle the matter, the collection agency may take it.

Watch the video below to learn more about the settlement process:

ARstrat has received many complaints

Better Business Bureau (BBB) gives ARstrat, LLC an "F" rating, which indicates that the organization does not accredit the company. On the BBB website, ARstrat, LLC has had 25 complaints in the past three years, but only seven have been resolved within the past year.

ARstrat, LLC's billing, and collections practices were the subject of most complaints, while the remaining complaints dealt with its services. The Consumer Financial Protection Bureau (CFPB) has 14 complaints for ARstrat’s debt collection practices.

Let’s take a look at a real complaint from ARstrat’s BBB profile (edited for clarity):

“I was sent a letter from Arstrat stating I was in collections for a bill I do not owe. I would not have complaints against this company if it were not for their employee speaking so rudely to me. She spent the conversation yelling that the fault is entirely the hospital’s for not sending the correct documentation. I had to ask multiple times if I could finish my sentence and even still I was interrupted by her. She would not help resolve the issue, she instead decided to berate the hospital agent who was trying to resolve the problem on the other line.”

As you can see, ARstrat doesn’t have the greatest reputation. If you are being sued or harassed by ARstrat, SoloSuit can help you fight back and win in court.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

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