New York AG Recovers $1.2 Million From Debt Collection Company – Finance & Banking

On November 23, 2021, New York Attorney General Letitia James (“New York AG”) announced that her office had reached an agreement with a debt collection company to resolve allegations that the company violated Fair Debt Collections Practices Act, 15 USC § 1692 et seq. (“FDCPA”), the Consumer Financial Protection Act, 12 USC § 5552 (“CFPA”) and various state laws, including New York Executive Law § 63(12) and Sections 22-A and 29- H of the New York GBL. Specifically, the NY AG alleged that the company engaged in illegal debt collection tactics, including falsely implying that the collectors were lawyers or law enforcement, threatening to suspend consumer’s driver’s license and threatening criminal prosecution.

Under the terms of the agreement, the company and its affiliates may not engage or attempt to engage in the collection, brokerage, or settlement of consumer debt, as well as consumer credit services. consumption and payment processing. In addition, according to the order, the company and its affiliates must cease operations and dissolve within six months of the effective date of the agreement. In addition, the company and its subsidiaries must pay $1.2 million to the State of New York for costs, penalties, restitution, damages and reimbursement? for distribution at the sole discretion of the New York AG Office.

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