Georgia AG Reaches Settlement with Debt Collector for Suspected Illegal Debt Collection Practices | Goodwin



On August 12, 2021, the Georgia Attorney General’s (AG) office announced that it had reached a deal with a debt collector, resolving allegations that the company violated the Fair Debt Collection Practices Act (FDCPA) and the Georgia Fair Business Practices Act. (GFBPA).

After conducting an investigation, Georgia AG alleged that the company had engaged in acts or practices in connection with debt collection that harassed and deceived consumers, for example by threatening consumers with arrest or imprisonment if they do not pay their debt, by failing to disclose in initial communications with consumers that the company was attempting to collect a debt and that it did not provide to consumers, within five days of the initial communication , a written notification containing certain information, as required by federal law.

Under the settlement agreement, the company agreed to cease its collection practices on consumer accounts in Georgia and return those accounts to the MA, representing a contract value of more than $ 19.8 million of consumer debt. The company also agreed to pay a penalty of $ 41,500 and bring its practices into compliance with the FDCPA and GFBPA.

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