Absolute Resolutions Investments LLC: What Consumers Need to Know About This Debt Buyer

1. Company Overview

Absolute Resolutions Investments LLC (ARI) is a Minnesota-based debt-buying and collection firm founded on April 1, 2016. It is chartered in Arizona and registered to do business in several states, including Minnesota and North Carolina . Headquartered in Bloomington, MN (8000 Norman Center Drive, Suite 350), ARI operates through a corporate structure that includes Absolute Resolutions Corporation as its managing company. Leadership includes Robert Johnson (CEO) and Chad Lemke (COO), among others.

As a debt buyer, ARI purchases defaulted debt in bulk—typically at heavily discounted rates—as part of a distressed-asset strategy. The company then attempts to collect the full original balances (plus interest and fees) from consumers.

ARI is accredited by the Better Business Bureau (BBB), holding a B rating, and maintains branches in Minnesota, North Dakota, and California.

2. Business Model: How Debt-Buying Works

A. Acquisition of Distressed Debt

ARI specializes in acquiring “non-performing bad debt,” often originating from credit cards, loans, or retail accounts that creditors have charged off. They purchase these debts at a fraction of their value—often pennies on the dollar .

B. Collection Practices

Once ARI obtains ownership, it uses methods such as:

• Mail and electronic correspondence

• Phone calls to consumers

• Legal action, when necessary, to secure judgments

If these methods fail, ARI often pursues lawsuits, which may lead to judgments, garnishments, or liens—particularly in states like Florida and Texas, where collection rules vary significantly .

3. Legal Framework and Consumer Impact

A. Regulation Under FDCPA and FCRA

As a debt collector, ARI operates under federal statutes:

• The Fair Debt Collection Practices Act (FDCPA)

• The Fair Credit Reporting Act (FCRA)

These laws regulate communications with debtors and dictate credit reporting standards.

B. Risk of Lawsuits

ARI may file suit when informal collection fails. Courts often grant default judgments rapidly—within weeks of non-response. These can lead to:

• Bank account garnishment

• Wage garnishment

• Judgment liens on property

• Renewed and compounded judgments over time 

In many jurisdictions, judgments remain enforceable for up to 20 years and can be renewed .

4. Company Reputation & Complaints

A. BBB Profile Insights

ARI is BBB-accredited and holds a B rating. However, the firm receives frequent customer complaints related to:

• Repeated communication despite dispute

• Alleged failure to provide validation of debt

• Reporting inaccuracies in credit bureaus

B. Legal Disputes and Federal Cases

Notable cases involving ARI include:

• Velez v. ARI (2022, N.D. Ill.): The court dismissed FDCPA allegations where ARI allegedly communicated with a consumer after the consumer’s legal representation was known.

• Absolute Resolutions Investments LLC vs. Salam Barq: A stipulated judgment awarded ARI $5,048.91 plus fees in California Superior Court.

C. Consumer Experiences

On forums like Reddit, consumers report anxiety over receiving lawsuit notices from ARI—sometimes first learning of alleged debt when faced with court action, and expressing confusion over validation and notification procedures.

5. Consumer Rights and Dispute Strategies

If ARI contacts you regarding a debt, you have robust legal protections:

A. Debt Validation

Under FDCPA, a consumer has 30 days to request debt validation upon first contact. ARI is then required to provide proof of the debt; failure to do so can halt collection efforts .

B. Disputing Credit Reporting

The FCRA allows consumers to dispute credit report entries. If ARI's information is inaccurate or outdated, you can challenge it with credit bureaus; they must investigate and respond within 30 days.

C. Handling Lawsuits

• Always respond promptly to a summons.

• Consider legal defense or negotiation.

• Courts often grant default judgments quickly for non-response .

• Consult an attorney if sued—many operate on flat-fee or payment plan bases (e.g., Florida or Texas) .

D. Negotiation and Settlement

You may settle for less than the full balance—often without deletion from credit reports—and may request a “pay-for-delete” arrangement. ARI may not be amenable to goodwill deletion .

6. Business Strategy and Market Position

ARI’s operational strategy mirrors that of many institutional debt buyers:

• Price low for debts, offsetting collection and legal expenses.

• Maximize recovery via settlement, courts, or garnishments.

• Use technology and process efficiencies to reduce overhead.

The firm handles large complaint volumes with structured responses, as seen in BBB records. Their B accreditation suggests compliance, despite disputes.

7. Ethical Considerations and Consumer Challenges

ARI's business touches on important ethical debates:

A. Consumer Vulnerability

Many targets are financially distressed. ARI’s aggressive collection and litigation tactics can exacerbate hardship.

B. Transparency Requirements

Accurate debt validation and clear communication are legal and ethical imperatives, yet enforcement is inconsistent—leading to disputes .

C. Regulatory Scrutiny

Occurrences of litigation and consumer complaints have triggered defense strategies based on regulatory compliance and case law (e.g., Velez).

8. Strategic Advice for Consumers

If dealing with ARI, consider the following steps:

1. Request validation in writing within 30 days of first contact.

2. Monitor credit reports for ARI entries, contest inaccuracies.

3. Respond to court summons promptly; never ignore legal notices.

4. Understand state laws—e.g., judgment lifespans and garnishment exemptions.

5. Seek legal or credit assistance; many firms offer affordable representation.

6. Negotiate settlements strategically, knowing deletion may not be guaranteed.

7. Document everything, including communications and dispute outcomes.

9. The Broader Context: Industry Practices

ARI’s approach typifies the debt-buying industry, underscoring several key trends:

• Fragmentation: Securitization of charged-off debts leads to complex ownership chains.

• Automation: Technology-driven contact systems, payment portals.

• Legal escalation: High-volume, low-dollar lawsuits are routinely filed.

• Credit leverage: Consumer credit rating remains the primary motivator for payment.

ARI mirrors these practices through scalable legal actions and aggressive collection models.

10. Conclusion

Absolute Resolutions Investments LLC is a major player in the distressed debt market, purchasing charged-off accounts to pursue collection through calls, letters, and lawsuits. The firm operates within the FDCPA and FCRA framework—rated “B” by the BBB but frequently disputed by consumers.

For individuals encountering ARI, awareness of legal protections, timely responses, and strategic negotiation can significantly reduce risk—from credit damage to legal judgments. While ARI's model is legally sanctioned, its impact on vulnerable consumers raises ethical and regulatory questions central to policy discourse on debt collection.

Ultimately, ARI represents both the efficiency and tension inherent in modern debt recovery—a reminder that legal literacy and proactive defense are essential for anyone facing their collection efforts.