Operation Corrupt Collector - Federal & State Actions 2020

Operation Corrupt Collector

Federal & State Actions | 2020

Federal Actions

FEDERAL ACTIONS:

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

FEDERAL TRADE COMMISSION

FTC v. National Landmark

Logistics, LLC, et al.

No. 0:20cv2592

U.S. District Court

District of South Carolina

(Charlotte, North Carolina area)

Civil lawsuit: The FTC’s complaint,

seeking permanent injunction and

equitable monetary relief, alleges that

this company and its operators

collected more than $12 million from

consumers through illegal debt

collection practices. The defendants

allegedly used robocalls to leave

deceptive messages for consumers

about debts claiming they face

impending legal action about debts,

and when consumers returned the

call, the defendants would falsely

claim to be from a mediation or law

firm, again threatening legal action,

using knowledge of consumers’

personal information as a way to

convince consumers the threats were

real. The complaint alleges that in

many instances, consumers did not

owe the debt being collected or the

defendants had no right to collect it.

Date of action:

7/13/2020: Complaint filed.

Related matters:

7/17/20: Ex parte Temporary Restraining

Orders issued.

8/25/2020: Stipulated preliminary

injunction entered as to defendants Liberty

Solutions & Associates LLC, LSA

Processing System LLC, James Dennison

and Eric Dennison.

9/14/2020: Temporary Restraining Order

as to defendants National Landmark

Logistics LLC, National Landmark Service

of United Recovery LLC, Silverlake

Landmark Recovery Group, LLC, and Jean

Cellent extended until 10/5/2020.

Status of action:

Pending.

Federal Trade Commission

Jay Mayfield

(202) 326-2656

jmayfield@ftc.gov

FTC v. Absolute Financial

Services, LLC, et al.

No. 0:20cv2596

U.S. District Court

Civil lawsuit: The FTC’s complaint,

seeking permanent injunction and

equitable monetary relief, alleges that

this company and its operators

collected more than $5.2 million from

Date of Action:

7/13/2020: Complaint filed.

Related matters:

7/17/2020: Ex parte Temporary

Federal Trade Commission

Jay Mayfield

(202) 326-2656

jmayfield@ftc.gov

District of South Carolina

(Charlotte, North Carolina area)

consumers through illegal debt

collection practices. In its complaint,

the FTC alleged that the company

used the defendants in the National

Landmark Logistics case (above) to

place deceptive robocalls alleging

that consumers owed debt and faced

legal action if they did not reply.

Once consumers called the

defendants after receiving the

message, the defendants would often

falsely claim to be representing a law

firm or threaten consumers with arrest

if they did not immediately pay the

debt. According to the complaint, the

defendants would use consumers’

personal information (provided by the

National Landmark defendants) as a

way to convince consumers that the

debt was legitimate, among numerous

other illegal tactics.

Restraining Orders issued.

9/14/2020: Stipulated preliminary

injunction entered.

Status of action:

Pending.

FTC v. Global Asset Financial

Services Group LLC, et al.

No. 3:19-cv-55-GCM

U.S. District Court

Western District of North Carolina

(North Carolina and New York)

Civil lawsuit: The FTC’s complaint

charged the Global Asset Financial

Services Group collection operation

with falsely claiming to be attorneys

or affiliated with attorneys to pressure

consumers into making payments on

fake or unauthorized debts and

threatening to take legal action

against consumers if they did not pay.

One of the companies, a debt-broker,

was alleged to have bought, sold, and

placed whole portfolios of fake debt,

even after consumers said they did

not recognize the debt.

Date of action:

6/12/2019: Stipulated Final Order against 4

defendants entered.

12/06/2019: Stipulated Final Orders

against 12 remaining defendants entered.

In June 2019, the court entered a

settlement order as to four of the

defendants. In December 2019, the

remaining 12 defendants also agreed to

settle the charges against them. The court

entered stipulated judgments as to all

defendants banning them from debt

collection, debt brokering activities and

from misrepresenting to consumers that

Federal Trade Commission

Jay Mayfield

(202) 326-2656

jmayfield@ftc.gov

https://www.ftc.gov/

news-events/press-

releases/2019/12/op

erators-phantom-

debt-scheme-

permanently-

banned-debt-

collection

they are attorneys. The settlements also

include monetary judgments.

Status of action:

Completed.

FTC and State of New York v.

Hylan Asset Management, LLC, et

al.

No. 1:18-cv-00710-LJV

U.S. District Court

Western District of New York

(New York)

Civil lawsuit: The FTC and the New

York Attorney General’s complaint

charged the Hylan defendants, a debt

broker operation, with buying,

placing for collection, and selling

portfolios of phantom debts,

including debts that were fabricated

or unauthorized by consumers, even

though the debt broker was aware that

many of these debts were fabricated

or legally unenforceable. Hylan then

placed the phony debts for collection

with several collection agencies,

including another corporate

defendant, Worldwide Processing

Group, LLC, which used illegal

tactics to collect on them, despite

consumers’ credible denials that they

did not owe the debts.

Date of action:

6/26//2019: Stipulated Orders for

Permanent Injunction and Monetary

Judgment entered.

In June 2019, the court approved a

Stipulated Final Order that bans the Hylan

defendants from debt collection activities

and imposes a monetary judgment. The

June 2019 Stipulated Order against the

defendants involved in Worldwide

Processing bans the company and its

owner, Frank A. Ungaro, Jr. from

engaging in unlawful collection practices

and imposes a monetary judgment.

Status of action:

Completed.

Federal Trade Commission

New York State Office of

the Attorney General

(case filed jointly)

Jay Mayfield

(202) 326-2656

[email protected]

https://www.ftc.gov/

news-events/press-

releases/2019/07/ph

antom-debt-brokers-

collectors-settle-ftc-

new-york-ag-

charges

FTC and State of New York v.

Campbell Capital LLC, et al.

No. 1:18-cv-01163-LJV-MJR

U.S. District Court

Western District of New York

(New York)

Civil lawsuit: The FTC and New

York Attorney General sued Robert

Heidenreich; Campbell Capital LLC;

Kahl, Heidenreich, and Nemmer

LLC; Urban, Heidenreich, Melendez,

and Associates, LLC; J & V

Receivables LLC; Rich Financial

LLC; and BCH & Associates Ltd.

The complaint alleged egregious debt

collection practices, such as calling

Date of action:

2/07/2020: Stipulated Order for Permanent

Injunction and Monetary Judgment

Entered against defendant Robert

Heidenreich.

2/07/2020: Default judgment against

remaining defendants entered.

In February 2020, the Court approved a

Federal Trade Commission

New York State Office of

the Attorney General

(case filed jointly)

Jay Mayfield

(202) 326-2656

jmayfield@ftc.gov

https://www.ftc.gov/

news-events/press-

releases/2020/02/op

erator-fraudulent-

debt-collection-

consumers and falsely claiming to

work in law enforcement, typically

coupled with false claims that

consumers committed a crime or

were about to be arrested on a

warrant.

Stipulated Final Order settling the claims

against defendant Robert Heidenreich.

Under the settlement, he is permanently

banned from the debt collection business

and prohibited from misleading consumers

about any financial products and includes

a monetary judgment.

A February 2020 default judgment was

entered against the remaining defendants

imposing a ban from the debt collection

business and a monetary judgment.

Status of action:

Completed.

scheme-settles-ftc-

new-

york?utm_source=g

ovdelivery

CONSUMER FINANCIAL PROTECTION BUREAU

Consumer Financial Protection

Bureau and the People of the State

of New York, by Letitia James,

Attorney General for the State of

New York v. Douglas MacKinnon,

Northern Resolution Group, LLC,

Enhanced Acquisitions, LLC,

Delray Capital, LLC, and Mark

Gray

U.S. District Court

Western District of New York

(Buffalo, New York)

Civil lawsuit: The CFPB and New

York Attorney General sued Douglas

MacKinnon, Northern Resolution

Group, LLC, Enhanced Acquisitions,

LLC, Delray Capital, LLC, and Mark

Gray for illegal collection tactics,

including misrepresenting to

consumers that they owed sums they

did not owe; falsely threatening

consumers with legal action that the

collectors had no intention of taking;

and impersonating law enforcement

officials, government agencies, and

court officers.

Date of action:

7/25/2019: Stipulated Final Judgment

filed.

The Stipulated Final Judgment with

MacKinnon, Northern Resolution Group,

and Enhanced Acquisitions banned them

from the industry and required they $60

million in redress and penalties. The

Stipulated Final Judgment with Delray

Capital and Gray banned them from the

industry and required payment of redress

and civil money penalties.

Status of action:

Completed.

Consumer Financial

Protection Bureau

New York State Office of

the Attorney General

(case filed jointly)

Marisol Garibay

Marisol.Garibay@cf

pb.gov

https://www.consum

erfinance.gov/about-

us/newsroom/cfpb-

and-new-york-

attorney-general-

settle-debt-

collection-group/

Bureau of Consumer Financial

Protection and the People of the

State of New York, by Letitia

James, Attorney General for the

State of New York, v.

JPL Recovery Solutions, LLC,

Check Security Associates, LLC

dba Warner Location Services and

Orchard Payment Processing

Systems, ROC Asset Solutions LLC

dba API Recovery Solutions,

Regency One Capital LLC,

Keystone Recovery Group, LLC,

Christopher L. Di Re, Scott A.

Croce, Brian J. Koziel, and Marc

D. Gracie

U.S. District Court

Western District of New York

(Buffalo, New York area)

Civil lawsuit: The CFPB and the New

York Attorney General sued a

network of five companies, two of

their owners, and two of their

managers, for illegal debt collection

practices. The complaint alleges that

from at least 2015, the defendants

have used deception, harassment, and

other improper methods to induce

consumers to make payments to them

in violation of the Fair Debt

Collection Practices Act (FDCPA)

and the Consumer Financial

Protection Act (CFPA). The

complaint seeks consumer redress,

disgorgement of ill-gotten gains, civil

money penalties, and appropriate

injunctive relief against the

defendants.

Date of action:

9/08/2020: Suit filed.

Status of action:

Pending.

Consumer Financial

Protection Bureau

New York State Office of

the Attorney General

(case filed jointly)

Marisol Garibay

Marisol.Garibay@cf

pb.gov

www.consumerfina

nce.gov/policy-

compliance/enforce

ment/actions/jpl-

recovery-solutions-

llc-et-al/

U.S. DEPARTMENT OF JUSTICE

U.S. v. Angel Armando Adrianzen

U.S. District Court

Southern District of Florida

(California)

Criminal indictment and conviction.

Pleaded guilty to conspiracy to

commit mail fraud and wire fraud for

partnering with call centers in Peru

that took money from U.S. Spanish-

speaking victims through lies and

threats. These callers claimed to be

attorneys or government

representatives, and falsely told

victims that they had failed to pay for

Date of action:

9/2019: Complaint filed.

10/08/2019: Indictment.

11/21/2019: Pleaded guilty (pending

sentencing).

U.S. Department of Justice

Consumer Protection

Branch

U.S. Postal Inspection

Service

https://www.justice.

gov/opa/pr/californi

a-resident-charged-

leading-

telemarketing-

conspiracy-defraud-

and-extort-us-

consumers

https://www.justice.

gov/opa/pr/californi

or receive delivery of products.

a-resident-pleads-

guilty-

telemarketing-

conspiracy-defraud-

us-consumers

U.S. v. Jesus Gutierrez Rojas,

Alexandra Podesta, Virgilio Polo,

and Omar Portocarrero

U.S. District Court

Southern District of Florida

(Lima, Peru)

Criminal indictment, extradition, 4

defendants sentenced to terms of

incarceration.

Gutierrez oversaw a series of call

centers in Peru that falsely told

Spanish-speaking victims across the

United States that they incurred debts

and would suffer various

consequences for failure to pay off

the debts that they did not, in fact,

owe. Podesta, Polo, and Portocarrero

managed and supervised three of

these call centers.

Date of action:

4/2019: Defendants extradited.

Summer 2019: Pleaded guilty and

sentenced to terms of incarceration.

U.S. Department of Justice

Consumer Protection

Branch

U.S. Postal Inspection

Service

https://www.justice.go

v/opa/pr/four-

extradited-peru-

operating-spanish-

speaking-call-centers-

extorted-us-consumers

https://www.justice.go

v/opa/pr/peruvian-

man-pleads-guilty-

operating-spanish-

speaking-call-center-

threatened-and-

extorted-us

https://www.justice.go

v/opa/pr/three-

peruvians-plead-

guilty-overseeing-

spanish-speaking-call-

centers-extorted-us-

consumers

https://www.justice.go

v/usao-sdfl/pr/four-

peruvians-sentenced-

overseeing-spanish-

speaking-call-centers-

threatened-and

U.S. v. Johnny Hidalgo Marchan,

Francesco Guerra, and Rodolfo

Hermoza

U.S. District Court

Criminal indictment, extradition, and

3 defendants sentenced to terms of

incarceration.

The three men operated call centers in

Date of action:

12/2019: Defendants extradited.

Spring 2020: Pleaded guilty.

Summer 2020: Sentenced to terms of

U.S. Department of Justice

Consumer Protection

Branch

U.S. Postal Inspection

https://www.justice.go

v/opa/pr/three-men-

extradited-overseeing-

call-centers-

threatened-and-

defrauded-spanish-

Southern District of Florida

(Lima, Peru)

Peru, which used government

impersonation, lies, and threats to

steal money from thousands of

Spanish-speaking victims in the U.S.

The callers falsely accused the

victims of having failed to accept

delivery of products and claimed the

victims owed fines and that court

proceedings would be brought against

them.

incarceration.

Service

speaking-us

https://www.justice.go

v/opa/pr/two-

peruvians-plead-

guilty-overseeing-call-

centers-threatened-

and-defrauded-

spanish-speaking

https://www.justice.go

v/opa/pr/peruvian-

man-pleads-guilty-

overseeing-call-

centers-threatened-

and-defrauded-

spanish-speaking

https://www.justice.go

v/opa/pr/three-

peruvian-men-

sentenced-significant-

terms-incarceration-

overseeing-call-

centers

State Actions

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

ARIZONA

State of Arizona v. Mark

Anthony Smith and Deborah

Ann Butler, d/b/a CMS Financial

Group, John Lee Group &

Associates, and TD Financial

Solutions Group AZ

CV2020-011728

Superior Court of Arizona in the

County of Maricopa

(Phoenix, Arizona)

Civil lawsuit, seeking restitution, civil penalties,

attorneys’ fees and costs, and injunctive relief, filed

under the Arizona Consumer Fraud Act and alleging

that the debt collectors call consumers nationwide

from Phoenix, Arizona using false claims and threats

to induce consumers to pay debts, including debts

that the defendants have no authority to collect. The

Defendants allegedly impersonate law enforcement

officers and process servers during calls to consumers

and claim that they are attempting to serve a

summons and complaint. In voicemails left for

consumers, defendants represent that consumers must

immediately respond or be subject to court action.

Defendants allegedly frequently use call spoofing

software for their collection calls, which makes it

appear as though calls originated from court houses,

sheriffs’ offices, jails, or other public offices

When consumers return defendants’ voicemails,

defendants are alleged to falsely represent that they

are lawyers or associated with lawyers or a law firm

and make false or misleading statements, including

that a civil or criminal action is imminent and would

result in adverse consequences unless consumers

promptly pay or otherwise cooperate with

Defendants’ collection efforts. Defendants’ alleged

false threats include: that defendants will garnish

wages and tax returns; place liens on house and car

titles; freeze bank accounts; file to have consumers’

drivers licenses suspended; send out law enforcement

to consumers’ houses, their relatives’ houses, and/or

place of employment; and have consumers arrested.

Date of action:

9/23/2020: Complaint

filed.

Arizona Attorney

General’s Office

Katie Conner

602-542-8019

Katie.Conner@azag.go

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

CALIFORNIA

People v. Adir International,

LLC dba Curacao, et al.

Case No. BC680425

California Superior Court

Los Angeles County

(Los Angeles, California)

Civil lawsuit against retail chain that targeted Latino

immigrants. Complaint alleges numerous violations

of California law, including violations of California’s

Rosenthal Fair Debt Collection Practices Act and the

Small Claims Act.

Alleged violations include: threatening debt

collection letters; failure to serve consumers with

small claims actions and required account records,

leading to default judgments and unlawful wage

garnishment; unlawfully sending independent

contractors to represent company at small claims

hearings; and falsification of claimed costs of suit,

artificially inflating default judgments.

Date of action:

2/19/2020: First Amended

Complaint filed.

Status of action:

Pending.

California Dept. of

Justice - Attorney

General’s Office

(Los Angeles County

Department of

Consumer and Business

Affairs assisted in pre-

litigation and litigation

investigations)

Press contact on all

matters:

(916) 210-6000

agpressoffice@doj.ca.

gov

https://oag.ca.gov/new

s/press-

releases/attorney-

general-becerra-takes-

retailer-curacao-court-

unlawfully-preying

People v Ramil Abalkhad et al.

Case No. BA453003

Los Angeles County Superior

Court

(California)

Criminal Action: Felony Complaint filed against

jewelry store owner for multiple offenses, including

conspiracy to engage in unlawful debt collections

Date of action:

11/01/2019: Ordered to

pay $16,440 victim

restitution.

California Dept. of

Justice - Attorney

General’s Office

Press contact on all

matters:

(916) 210-6000

agpressoffice@doj.ca.

gov

https://oag.ca.gov/new

s/press-

releases/attorney-

general-becerra-

secures-more-16000-

victim-restitution-san-

diego

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

COLORADO

CAR & Associates

(Brea, California)

Cease & Desist Advisory Notice

Date of action:

6/09/2020.

Status of action:

Complete.

Colorado Department of

Law, Consumer Credit

Unit

Lawrence Pacheco

Director of

Communications

(720) 508-6553

Lawrence.Pacheco@coa

g.gov

Accredited Management

Solutions LLC

(East Amherst, New York)

Cease & Desist Advisory Notice

Date of action:

1/21/2020.

Status of action:

Complete.

Colorado Department of

Law, Consumer Credit

Unit

Lawrence Pacheco

Director of

Communications

(720) 508-6553

Lawrence.Pacheco@coa

g.gov

CSN Student Loan Recovery

(Phoenix, Arizona)

Cease & Desist Advisory Notice

Date of action:

10/16/2019.

Status of action:

Complete.

Colorado Department of

Law, Consumer Credit

Unit

Lawrence Pacheco

Director of

Communications

(720) 508-6553

Lawrence.Pacheco@coa

g.gov

Gaffney Mediation Services

(Richmond, Virginia)

Cease & Desist Advisory Notice

Date of action:

10/15/2019.

Status of action:

Complete.

Colorado Department of

Law, Consumer Credit

Unit

Lawrence Pacheco

Director of

Communications

(720) 508-6553

Lawrence.Pacheco@coa

g.gov

Johnson, Smith & Associates

(Woburn, Massachusetts)

Cease & Desist Advisory Notice

Date of action:

9/30/2019.

Status of action:

Complete.

Colorado Department of

Law, Consumer Credit

Unit

Lawrence Pacheco

Director of

Communications

(720) 508-6553

Lawrence.Pacheco@coa

g.gov

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

CONNECTICUT

Notice of Intent to Impose Civil

Penalty and Notice of Right to

Hearing in the Matter of:

Samantha S. Flores d/b/a

Premier Legal and Financial

Services a/k/a Premier Legal &

Financial Group

(Apple Valley, California)

Administrative action alleging that Respondent acted

within this state as a consumer collection agency

without a license, and used false, deceptive or

misleading representations or means in connection

with the collection of debt from a Connecticut

resident, including representing that the debt was

valid and a lawsuit would be filed imminently.

Date of action:

9/10/2020: Notice issued.

Status of action:

Pending: Respondent has

been afforded an

opportunity to request a

hearing on the allegations

set forth in the Notice.

State of Connecticut

Department of Banking

Matt Smith

(860) 240-8105

FLORIDA

CNR Express Group LLC

(Orlando, Florida)

Warning Letter

Based on consumer’s allegations, the targets are

failing to provide written validation of debts and have

orally represented themselves as attorneys. At this

time, the relief the Florida Office of the Attorney

General is seeking is response from target companies

with resolutions.

Date of action:

9/15/2020: Warning

Letter sent.

Florida Office of the

Attorney General

Kylie Mason

Press Secretary

Office of Attorney

General

Main: (850) 245-0150

Kylie.Mason@myflori

dalegal.com

Feldman and Stern

(Altamonte Springs, Florida)

Warning Letter

Based on consumer’s allegations, the targets are

failing to provide written validation of debts and have

orally represented themselves as attorneys. At this

time, the relief the Florida Office of the Attorney

General is seeking is response from target companies

with resolutions.

Date of action:

9/15/2020: Warning

Letter sent.

Florida Office of the

Attorney General

Kylie Mason

Press Secretary

Office of Attorney

General

Main: (850) 245-0150

Kylie.Mason@myflori

dalegal.com

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

IDAHO

Midwest Fidelity Services LLC

Idaho

(Kansas)

Mediation on Consumer Complaint:

Complainant contended that Midwest Fidelity

Services, LLC, an unlicensed collector in the State of

Idaho, was attempting to collect on a previously paid

debt.

Date of action:

6/06/2019: Complaint

received, file #11380.

7/19/2019: Mediation

resolution #10686. Midwest

Fidelity Services, LLC

releases debt against

complainant, ceases

collection efforts, and

acquires licensure.

Date of related events:

9/04/2019: Midwest Fidelity

Services, LLC became

licensed with the

Department.

Idaho Department of

Finance

Celia Kinney,

Consumer Affairs

Officer

(208) 332-8067

Midland Funding, LLC

Idaho

(California)

Mediation on Consumer Complaint:

Complainant contended that Midland Funding LLC

had assigned a debt against her that was the result of

an instance of identity theft. The debt was

subsequently assigned to Machol & Johannes LLC

who then garnished all of the funds in the

complainant’s checking account.

Date of action:

6/17/2020: Complaint

received, file # 12634.

8/13/2020: Mediation

Resolution #11887.

Date of related events:

Midland Funding LLC,

reached out to the assignee

of the debtor account

Machol & Johannes LLC

and provided the

complainant a fraud affidavit

to sign and return. Upon

receipt all further funds due

were cleared. As of

Idaho Department of

Finance

Celia Kinney, Consumer

Affairs Officer

(208) 332-8067

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

8/20/2020 and refund is

pending for the funds

garnished from the

consumer’s account.

JP Development, Inc. d/b/a

AcctCorp International

Idaho

(Idaho)

Mediation on Consumer Complaint:

Complainant contended that JP Development Inc.

acquired their account in error as it had been satisfied

with the original creditor. Subsequently JP

Development Inc. received a judgment against the

complainant and garnished the majority of the

disputed sum from their checking account.

Date of action:

3/20/2020: Complaint

received, file #12584.

4/21/2020: Mediation

Resolution #11843.

Date of related events:

5/06/2020: JP Development,

Inc. vacated the judgement

for debt that was previously

satisfied with the original

creditor, and issued a refund

to the consumer for all

monies previously

garnished.

Idaho Department of

Finance

Celia Kinney, Consumer

Affairs Officer

(208) 332-8067

Apex Servicing d/b/a First Loan

Idaho

(South Dakota)

Mediation on Consumer Complaint:

Apex Servicing issued a “Wage Assignment Demand

Notice” to the complainant, an employer, instructing

them to garnish wages from an employee paycheck

for alleged loans owed to Inbox Loan and First Loan.

This complaint was filed by an employer on behalf of

employee.

Date of action:

5/14/2020: Complaint

received, file # 12606.

6/01/2020: Mediation

Resolution #11864.

Date of related events:

6/01/2020: Subject of

complaint issued a “wage

assignment release” to the

complainant (employer of

the debtor). Furthermore,

subject claimed exemption

from licensure as First Loan

asserting to be owned by the

Elem Indian Colony of

Pomo Indians, a federally

recognized Indian Tribe.

Idaho Department of

Finance

Celia Kinney, Consumer

Affairs Officer

(208) 332-8067

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

ILLINOIS

People of the State of Illinois v.

Freedom Financial Solutions,

Desiree Hawkins, and Jean

Johnson

2020-CH-00397

Cook County Circuit Court

Chancery Division, Illinois

(Cook County, Illinois)

Civil lawsuit:

Complaint for Injunctive and Other Relief.

Date of action:

1/13/2020: Complaint filed.

Status of action:

Pending.

Illinois Attorney

General’s Office

Tori Joseph

[email protected]

https://illinoisattorneyg

eneral.gov/pressroom/

2020_01/20200113.ht

INDIANA

State of Indiana v. New Britain

Financial, LLC and Nelson

Macwan

45D01-2009-PL-000584

Lake County Superior Court

(Munster, Indiana)

Civil action with claims under the Indiana Deceptive

Consumer Sales Act and Senior Consumer Protection

Act seeking restitution, injunction, and civil penalties.

The State of Indiana alleges that Defendants New

Britain Financial, LLC and its owner Nelson Macwan

violated the Indiana Deceptive Consumer Sales Act

(“DCSA”) and Senior Consumer Protection Act by

attempting to collect debts from consumers that did

not belong to those consumers, were already paid,

were discharged in bankruptcy, or were otherwise not

owed. Additionally, the Defendants threatened to

have people arrested, to have their wages garnished,

and to have liens put on their homes when the

Defendants had no legal right to do so. And

Date of action:

9/04/2020: Complaint filed.

Status of action:

Pending.

Office of the Indiana

Attorney General

Shelley Triol

(317) 233-3715

[email protected]

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

Defendants violated the DCSA by acting as a debt

collector after having its license renewal denied by

the Indiana Secretary of State. The State of Indiana

seeks restitution for consumers, an order enjoining

New Britain Financial, LLC and Nelson Macwan

from acting as debt collectors in Indiana, and civil

penalties.

MASSACHUSETTS

Eastern Revenue, Inc.

(Wayne, Pennsylvania)

Cease Directive:

Issued in response to alleged unlicensed debt

collection activity in Massachusetts related to

apparent phantom debt.

Date of action:

8/31/2020: Completed.

Date of Related matters:

Consumer complaint

received on 8/19/2020

alleging attempted

collection activity on

7/31/2020.

Massachusetts

Division of Banks

Cynthia A. Begin, Esq.

First Deputy

Commissioner of

Banks

Massachusetts

Division of Banks

(617) 956-1523

cindy.begin@mass.gov

Johnson Smith & Associates

(Woburn, Massachusetts)

Cease Directive:

Issued in response to alleged unlicensed debt

collection activity in Massachusetts related to

apparent phantom debt.

Date of action:

2/19/2020: Completed.

(Consumer complaints

reported in FTC Sentinel

Database received on

8/13/2018 and 6/25/2019

alleging attempted

collection activity).

Massachusetts

Division of Banks

Cynthia A. Begin, Esq.

First Deputy

Commissioner of

Banks

Massachusetts

Division of Banks

(617) 956-1523

cindy.begin@mass.gov

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

The Offices of Morgan and Moss

(Newport Beach, California)

Cease Directive:

Issued in response to alleged unlicensed debt

collection activity in Massachusetts related to

apparent phantom debt.

Date of action:

2/19/2020: Completed.

(Consumer complaint

reported in FTC Sentinel

Database received on

1/15/2020 alleging

attempted collection

activity).

Massachusetts

Division of Banks

Cynthia A. Begin, Esq.

First Deputy

Commissioner of

Banks

Massachusetts

Division of Banks

(617) 956-1523

cindy.begin@mass.gov

Global Management Acquisition

Firm, Inc.

(Lawrenceville/Grayson/Norcross,

Georgia)

Cease Directive:

Issued in response to alleged unlicensed debt

collection activity in Massachusetts related to

apparent phantom debt.

Date of action:

12/02/2019: Completed.

(Consumer complaint

received on 9/12/2019

alleging attempted

collection activity on

9/9/2019).

Massachusetts

Division of Banks

Cynthia A. Begin, Esq.

First Deputy

Commissioner of

Banks

Massachusetts

Division of Banks

(617) 956-1523

cindy.begin@mass.gov

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

NEW MEXICO

State of New Mexico v. Capio

Partners, LLC, Capio Asset

Servicing, LLC, Mark Detrick,

James F. Richards, Bob Hodges,

The Law Offices of Mitchell D.

Bluhm & Associates, LLC,

Mitchell Bluhm, and Donald

Meisinger

U.S. District Court

District of New Mexico

(Duluth, Georgia/Sherman, Texas)

Civil lawsuit: New Mexico’s complaint asserts claims

under New Mexico’s Unfair Practices Act, the Fair

Debt Collection Practices Act, and the Fair Credit

Reporting Act against defendants’ collection

operation. The complaint alleges defendants’

operation collects medical debts using abusive

collection practices including attempts to collect

debts not owed and providing inaccurate information

to the credit bureaus.

Date of action:

9/28/20: Complaint filed.

Status of action:

Pending.

Office of the Attorney

General of New

Mexico

Matt Baca

mbaca@nmag.gov

State of New Mexico v. LVNV

Funding, LLC, Sherman

Financial Group LLC, Resurgent

Capital Services, L.P., Robert

Pierson, Donald Meisinger,

Guglielmo & Associates, and

Eliza Guglielmo

Second Judicial District Court of

New Mexico

(Arizona, New Mexico, New

York, South Carolina)

Civil lawsuit: New Mexico filed a complaint in state

court based on egregious collection practices and

attempted collection of stale debts in breach of New

Mexico’s Unfair Practice Act, including claims of

Fraudulent Misrepresentation, Negligent

Misrepresentation, and Unjust Enrichment. New

Mexico has requested temporary and permanent

injunctive relief, disgorgement, restitution, and civil

penalties.

Date of action:

9/18/2020: Complaint filed.

Status of action:

Pending.

Office of the Attorney

General of New

Mexico

Matt Baca

mbaca@nmag.gov

State of New Mexico v. Central

Mediation Services, Jay

Civil lawsuit: In response to complaints about CMS,

New Mexico filed a complaint in state court for

Date of action:

9/09/2020: Complaint filed.

Office of the Attorney

General of New

Matt Baca

mbaca@nmag.gov

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

Camacho, and Ronald C. Serio

Seco

nd Judicial District Court of

New Mexico

uffalo, New York)

violations of the New Mexico Unfair Practices Act.

CMS is alleged to have collected on debts not owed

that it had no authority to collect and also to utilize

abusive collection practices including threatening

consumers with false consequences such as charging

consumers with fraud, canceling their vehicle

registration, and filing lawsuits to garnish wages.

New Mexico has requested injunctive relief,

disgorgement, civil penalties, and restitution for

consumers in this lawsuit.

Status of action:

Pending.

Mexico

State of New Mexico v. Ability

Recovery Services

cranton, Pennsylvania)

Cease & Desist Letter: On September 2, 2020, New

Mexico ordered Ability Recovery Services to

immediately cease and desist from engaging in

business practices that violate the New Mexico

Unfair Practices Act (“UPA”), the New Mexico

Collection Agency Regulatory Act (“CARA”), the

Fair Debt Collection Practices Act (“FDCPA”), and

the Fair Credit Reporting Act (“FCRA”). Consumers

reported that Ability tried to collect debts not owed

and refused to review the validity of debts it tried to

collect.

Date of action:

9/02/2020: Sent Cease &

Desist by certified mail.

Office of the Attorney

General of New

Mexico

Matt Baca

mbaca@nmag.gov

NEW YORK

People of the State of New York,

by Letitia James, Attorney

General for the State of New

York, v. Kenneth Thomas,

Wesley Newman, Johnfredrick

Daniels, Jasmine Ashley Daniels,

Elizabeth Farnham, Midway

Resolution Services LLC (d/b/a

Civil lawsuit: (Special proceeding) with ex parte

Temporary Restraining Order in New York State

Supreme Court, Erie County against Midway

Resolution Services, LLC (d/b/a Greenland

Recovery), owners Kenneth Thomas and Wesley

Newman and certain collectors.

The New York Attorney General is seeking to

permanently ban all respondents from the debt

Date of action:

9/16/2020: Proceeding filed.

Date of related events:

9/18/2020: Temporary

Restraining Order. TRO

prohibits respondents from

engaging in debt collection

or related activities. TRO

New York State Office

of the Attorney

General

Sofia Quintanar

[email protected].

gov

https://ag.ny.gov/press-

release/2020/attorney-

general-james-moves-

shut-down-illegal-

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

Greenland Recovery Group), and

Jax Management Group LLC

810231/2020

New York Supreme Court

Erie County

(Erie County, New York)

collection industry, and seeking restitution,

disgorgement, damages, civil penalties, costs and an

accounting. Respondent Thomas breached a prior

Assurance of Discontinuance with our office, so as to

him and his company (Midway) we are also seeking

relief for their breach of the AOD.

The New York Attorney General alleges that

respondents used a call spoofing service to disguise

their phone number to appear as consumers’ local

county court or sheriff. Respondents claimed to be

process servers and/or court officials and falsely told

consumers that they would be arrested, subject to a

“pickup order” or bench warrant if they failed to call

the “underwriting attorney” and pay their debts.

Respondents also claimed that consumers would have

their license suspended and wages garnished.

Respondents made similar threats to consumer

debtors’ friends, family members and employers. The

New York Attorney General has thousands of call

recordings substantiating these allegations.

places a freeze on corporate

respondents’ bank accounts

and respondents’ service

provider.

Status of action:

TRO granted. Return date

for request for permanent

injunction currently

scheduled for 10/22/2020.

debt-collecting-scheme

Two Actions filed jointly with the

Federal Trade Commission:

FTC and State of New York v.

Hylan Asset Management, LLC,

et al.

FTC and State of New York v.

Campbell Capital LLC, et al.

See entries under “Federal Trade Commission”

(above).

New York State Office

of the Attorney

General

Federal Trade

Commission

(cases filed jointly)

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

Two Actions filed jointly with the

Consumer Financial Protection

Bureau:

CFPB and State of New York v.

Douglas MacKinnon, et al.

CFPB and State of New York v.

JPL Recovery Solutions, LLC, et

al.

See entries under “Consumer Financial Protection

Bureau” (above).

New York State Office

of the Attorney

General

Consumer Financial

Protection Bureau

(cases filed jointly)

In the Matter of Forster &

Garbus LLP

Offices of the Department of

Financial Services

New York, New York

(Commack, New York)

Administrative action: Statement of Charges filed

against Forster & Garbus LLP for failing to comply

with substantiation requirements under New York

State law.

In the statement of charges, the Department alleges

that Forster & Garbus failed to comply with

substantiation requirements in several ways,

including: failing to provide any substantiation;

failing to provide substantiation within required

timeframes; and providing insufficient substantiation

by omitting, for example, underlying transaction

documents.

Date of action:

9/16/2020: Statement of

Charges filed.

Related dates:

Hearing scheduled for

1/12/2021 at the offices of

the Department of Financial

Services, New York, New

York.

New York State

Department of

Financial Services

Sophia Kim

public-

[email protected]y.gov

https://www.dfs.ny.go

v/reports_and_publicat

ions/press_releases/pr2

02009161

NORTH CAROLINA

State of North Carolina v.

Turtle Creek Assets., LTD.,

Turtle Creek Rentals LLC,

Royal Park Holdings, Inc. and

Gordon Scott Engle

Civil lawsuit: Seeking injunctive relief, civil

penalties, restoration of money paid, and restitution.

The lawsuit alleges that between 2012 and 2018,

Engle used his codefendant-debt collection

companies to purchase unpaid consumer debt from

Date of action:

7/10/2019: Complaint filed.

Date of related events:

7/15/2019: TRO entered.

North Carolina

Department of Justice

Laura

Brewerlbrewer@ncdoj.

gov

(919) 716-6484

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

No. 19-CVS-009339

Wake County Superior Courts

(North Carolina and Texas)

Aarons Inc. and since 2018, Engle has collected or

attempted to collect on these unpaid debts from North

Carolina consumers. Engle’s companies are registered in

Texas; he failed to file the appropriate registrations with

the North Carolina Secretary of State to operate in North

Carolina and also failed to obtain the necessary permits

from the North Carolina Department of Insurance to

operate as a collection agency. Engle’s companies sent

consumers collection notices telling them they had

committed a criminal violation by failing to return rented

property. The notices appeared to be, but were not, official

court notices. Some of the letters even included unsigned

criminal summonses that appeared to be real, but did not

have any legal effect, and were delivered by Engle’s hired

private police officers. In addition to sending these

unsigned summonses, Engle and his companies also filed

hundreds of criminal complaints with misleading language

in several North Carolina counties that resulted in actual

criminal summonses being issued against customers.

7/24/2019: Preliminary

injunction entered (still in

effect).

Status of action:

Pending – case currently

stayed due to Gordon Scott

Engle’s criminal cases for

felony debt collecting

without a license. (See NC

DOI actions.)

https://ncdoj.gov/attorn

ey-general-josh-stein-

obtains-temporary-rest/

State of North Carolina, North

Carolina Department of Insurance

v. Gordon Scott Engle DBA Turtle

Creek

NC DOI Case 69525

Charged in 17 counties including:

Alexander, Anson, Burke,

Cumberland, Davie, Guilford, Iredell,

Lee, Mecklenburg, Moore,

Richmond, Rowan, Stanley, Stokes,

Surry, Wilkes and Yadkin

(Cornelius, North Carolina)

Criminal Actions: 81 Felony Counts of Failure to Secure

Permit from Commissioner of Insurance – Debt Collecting

without a license, charged in 17 Counties – Victims in each

of the 81 counts.

Date of action:

8/2020: Case was finalized

at the State level.

Status of action:

Currently Pending Court for

17 North Carolina Counties.

North Carolina

Department of

Insurance, Criminal

Investigations

Marla Sink

(919) 807-6017

Marla.Sink@ncdoi.gov

https://www.ncdoi.gov

/news/press-

releases/2020/09/11/in

surance-commissioner-

causey-announces-

arrest-unlicensed-debt

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

NORTH DAKOTA

State of North Dakota v. Zaw

Lwin aka Pat Lwin

Civil No. 08-2020-CV-01994

Burleigh County District Court

North Dakota

(El Monte, California)

Assurance of Voluntary Compliance: Based on

violation of NDCC ch. 51-15 (Consumer Fraud

Law)(deceptive practices) and ch. 13-05 (Collection

Agencies Law)(failure to register as debt collector)

Date of action:

9/07/2020: Order of Approval

of Assurance of Voluntary

Compliance entered by the

Burleigh County District Court.

Status of action:

Completed.

Consumer Protection

& Antitrust Division,

Office of Attorney

General of North

Dakota

Liz Brocker

(701) 328-2210

lbrocker@nd.gov

State of North Dakota v.

Portfolio Recovery Management

Inc. and Jason Jakubec,

Individually, dba Karl

Frankovitch Law Firm

(New York, New York)

Cease & Desist Order: Based on failure to comply

with Civil Investigative Demand and based on

violation of NDCC ch. 51-15 (Consumer Fraud

Law)(deceptive practices) and ch. 13-05 (Collection

Agencies Law)(failure to register as debt collector).

Date of action:

7/13/2020: Cease and Desist

Order issued pursuant to

N.D.C.C. §51-15-07 for

violations of North Dakota law

and failure to comply with

Civil Investigative Demand.

Status of action:

Completed.

Consumer Protection

& Antitrust Division,

Office of Attorney

General of North

Dakota

Liz Brocker

(701) 328-2210

lbrocker@nd.gov

https://attorneygeneral.

nd.gov/news/fraudulen

t-out-state-debt-

collectors-banned-

north-dakota

State of North Dakota v. IKS and

Associates LLC and Karriem

Madison, Individually, dba

Bradford Stevens and Associates

(Riverside, California)

Cease & Desist Order: Based on failure to comply

with Civil Investigative Demand and based on

violation of NDCC ch. 51-15 (Consumer Fraud

Law)(deceptive practices) and ch. 13-05 (Collection

Agencies Law)(failure to register as debt collector).

Date of action:

7/13/2020: Cease and Desist

Order issued pursuant to

N.D.C.C. §51-15-07 for

violations of North Dakota law

and failure to comply with

Civil Investigative Demand.

Status of action:

Completed.

Consumer Protection

& Antitrust Division,

Office of Attorney

General of North

Dakota

Liz Brocker

(701) 328-2210

lbrocker@nd.gov

https://attorneygeneral.

nd.gov/news/fraudulen

t-out-state-debt-

collectors-banned-

north-dakota

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

State of North Dakota v. Global

Management Acquisition Firm

Inc. and Walter Hargrove,

Individually, dba Global

Management

(Lawrenceville, Georgia)

Cease & Desist Order: Based on failure to comply

with Civil Investigative Demand and based on

violation of NDCC ch. 51-15 (Consumer Fraud

Law)(deceptive practices) and ch. 13-05 (Collection

Agencies Law)(failure to register as debt collector).

Date of action:

7/13/2020: Cease and Desist

Order issued pursuant to

N.D.C.C. §51-15-07 for

violations of North Dakota

law and failure to comply

with Civil Investigative

Demand

Status of action:

Completed.

Consumer Protection

& Antitrust Division,

Office of Attorney

General of North

Dakota

Liz Brocker

(701) 328-2210

lbrocker@nd.gov

https://attorneygeneral.

nd.gov/news/fraudulen

t-out-state-debt-

collectors-banned-

north-dakota

State of North Dakota v. The

Trilateral Group, LLC and

Daniel Caldera dba Alliance

Litigation Associates

(Rancho Cucamonga, California)

Settlement agreement reached in which The Trilateral

Group, LLC and Daniel Caldera agreed to comply

with NDCC ch. 51-15 (Consumer Fraud

Law)(deceptive practices) and ch. 13-05 (Collection

Agencies Law) and cease any collection activity

involving the North Dakota consumer that filed a

consumer complaint.

Date of action:

5/08/2020: Letter

Agreement signed.

Status of action:

Completed.

Consumer Protection

& Antitrust Division,

Office of Attorney

General of North

Dakota

Liz Brocker

(701) 328-2210

lbrocker@nd.gov

State of North Dakota v. Global

Recovery Solutions, LLC

Civil No. 08-2020-CV-01617

Burleigh County District Court

North Dakota

(Boca Raton, Florida)

Assurance of Voluntary Compliance: Based on

violation of NDCC ch. 51-15 (Consumer Fraud

Law)(deceptive practices) and ch. 13-05 (Collection

Agencies Law)(failure to register as debt collector)

Date of action:

5/07/2020: Order of

Approval of Assurance of

Voluntary Compliance

entered by the Burleigh

County District Court.

Status of action:

Completed.

Consumer Protection

& Antitrust Division,

Office of Attorney

General of North

Dakota

Liz Brocker

(701) 328-2210

lbrocker@nd.gov

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

State of North Dakota v.

Brandon Wilson, Individually

and dba BHA and Bryant Hodge

Associates LLC

Civil No. 08-2020-CV-01456

Burleigh County District Court

North Dakota

(Manchester, New Hampshire)

Assurance of Voluntary Compliance: Based on

violation of NDCC ch. 51-15 (Consumer Fraud

Law)(deceptive practices) and ch. 13-05 (Collection

Agencies Law)(failure to register as debt collector).

Date of action:

4/21/2020: Order of

Approval of Assurance of

Voluntary Compliance

entered by the Burleigh

County District Court.

Status of action:

Completed.

Consumer Protection

& Antitrust Division,

Office of Attorney

General of North

Dakota

Liz Brocker

(701) 328-2210

lbrocker@nd.gov

State of North Dakota v. Apex

Business Solutions, LLC dba

Offices of Taylor and Michaels,

and Joshua Neal

Civil No. 08-2020-CV-00050

Burleigh County District Court

North Dakota

(Rialto, California)

Assurance of Voluntary Compliance: Based on

violation of NDCC ch. 51-15 (Consumer Fraud

Law)(deceptive practices) and ch. 13-05 (Collection

Agencies Law)(failure to register as debt collector).

Date of action:

1/08/2020: Order of

Approval of Assurance of

Voluntary Compliance

entered by the Burleigh

County District Court.

Status of action:

Completed.

Consumer Protection

& Antitrust Division,

Office of Attorney

General of North

Dakota

Liz Brocker

(701) 328-2210

lbrocker@nd.gov

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

State of North Dakota v.

Lakeshore Financial, LLC dba

LS Financial and Joel Williams,

Individually

Civil No. 08-2020-CV-00051

Burleigh County District Court

North Dakota

(Rock Hill, South Carolina)

Assurance of Voluntary Compliance: Based on

violation of NDCC ch. 51-15 (Consumer Fraud

Law)(deceptive practices) and ch. 13-05 (Collection

Agencies Law)(failure to register as debt collector).

Date of action:

1/08/2020: Order of

Approval of Assurance of

Voluntary Compliance

entered by the Burleigh

County District Court.

Status of action:

Completed.

Consumer Protection

& Antitrust Division,

Office of Attorney

General of North

Dakota

Liz Brocker

(701) 328-2210

lbrocker@nd.gov

State of North Dakota v.

Paramount Assets Protection

Services, LLC and Jeffrey

Pusateri, Individually

Civil No. 08-2019-CV-03834

Burleigh County District Court

North Dakota

(Fort Mill, South Carolina)

Assurance of Voluntary Compliance: Based on

violation of NDCC ch. 51-15 (Consumer Fraud

Law)(deceptive practices) and ch. 13-05 (Collection

Agencies Law)(failure to register as debt collector).

Date of action:

12/06/2019: Order of

Approval of Assurance of

Voluntary Compliance

entered by the Burleigh

County District Court.

Status of action:

Completed.

Consumer Protection

& Antitrust Division,

Office of Attorney

General of North

Dakota

Liz Brocker

(701) 328-2210

lbrocker@nd.gov

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

OHIO

State of Ohio ex rel. Attorney

General Dave Yost v. Advanced

Capital Solutions, Inc.

Stark County Court of Common

Pleas

(Canton, Ohio)

Civil lawsuit: Alleging violations of the Ohio

Consumer Sales Practices Act, including (1)

Noncompliance with the FDCPA, (2) Engaging in

harassing or abusive behavior, (3) Improper

communications with third parties, and (4) False,

misleading, and deceptive representations.

Date of action:

9/11/2020: Complaint filed.

Status of action:

Pending.

Ohio Attorney

General’s Office

Bethany McCorkle

and

Hannah Hundley

(614) 466-3840

SOUTH CAROLINA

Bureau of Consumer Financial

Protection; South Carolina

Department of Consumer

Affairs; and the State of

Arkansas Attorney General v.

Candy Kern-Fuller, Howard

Sutter III, and Upstate Law

Group LLC

No. 6:20-cv-786

U.S. District Court

District of South Carolina

(Easley, South Carolina)

Civil lawsuit: Alleging, among other activities,

unconscionable debt collection due to attempts to

collect money from consumers based on contracts

that were invalid under South Carolina law.

Date of action:

2/20/2020: Complaint filed

seeking injunctive relief,

equitable monetary relief,

and civil money penalties.

Status of action:

Matter is pending.

South Carolina

Department of

Consumer Affairs

Bailey Parker

(803) 734-4296

https://consumer.sc.go

v/business-

resourceslaws/enforce

ment-actions

Bureau of Consumer Financial

Protection, and South Carolina

Department of Consumer Affairs

v. Katharine Snyder,

Civil lawsuit: Alleging, among other activities,

unconscionable debt collection due to attempts to

collect money from consumers based on contracts

that were invalid under South Carolina law.

Date of action:

10/01/2019: Complaint filed

seeking injunctive relief,

equitable monetary relief,

South Carolina

Department of

Consumer Affairs

Bailey Parker

(803) 734-4296

Matter Name

Action Location

(Company Location)

Type of Action Date/Matter Information Responsible Agency

Press Contact

Press Release

Performance Arbitrage

Company, Inc., and Life

Funding Options, Inc.

No. 6:19-cv-02794-DCC

U.S. District Court

District of South Carolina

(Greenville, South Carolina)

and civil money penalties.

Status of action:

Matter is pending.

https://consumer.sc.go

v/business-

resourceslaws/enforce

ment-actions

WASHINGTON

State of Washington vs.

Convergent Outsourcing, Inc.

Case # 20-2-10463-9 SEA

King County Superior Court

(Renton, Washington)

Civil lawsuit: Alleging that from January 1, 2013 to

February 23, 2015, Convergent sent over 75,000

collection letters to Washington consumers, and

hundreds of thousands more to consumers in other

states, titled “Settlement Offer” that offered to

“settle” time-barred debts without disclosing that the

debts were legally unenforceable because the statute

of limitations had expired and, thus, made implied

threats to sue consumers over legally unenforceable

debts.

The lawsuit asserts violations of (1) the Consumer

Protection Act, RCW 19.86.020, (2) the Collection

Agency Act, RCW 19.16.250(16), and (3) per se

violation of the Consumer Protection Act, RCW

19.86.020—based on RCW 19.16.250(16)

The lawsuit seeks injunctive relief, civil penalties,

and consumer restitution.

Date of action:

6/25/2020: Complaint for

Injunctive and Other Relief

filed.

Washington Attorney

General

Dan Jackson

dan.jackson@atg.wa.g

https://www.atg.wa.go

v/news/news-

releases/ag-ferguson-

sues-debt-collection-

agency-deceptive-

collection-letters-over-

old