New York Attorney General Andrew Cuomo announced late Tuesday that his office has reached a deal with three Western New York debt collection agencies whereby the businesses will pay a total of $245,000 in penalties and costs and agree to modify some of their collection techniques.
The three companies -- Creditors Interchange Receivable Management, LLC, Capital Management Services, LP and Tri-Financial, LLC -- have agreed, in separate settlements, to substantially reform their business practices in order to be in full compliance with the Federal Fair Debt Collection Practices Act (FDCPA) and New York's Debt Collection Procedures Act, according to Cuomos office.
The action comes less than a week after the New York Attorney Generals office announced a sweeping inquiry into the practices of accounts receivable management companies in the state of New York
Cuomo said in a press release that his office will continue to investigate the myriad deceptive practices that debt collection companies, debt settlement companies and others employ as a means to exploit consumers who are already down on their luck. He urged other companies involved in debt collection and debt settlement to follow the example of the three companies named Tuesday.
Cuomos office said that it relied on consumer complaints against the companies in the cases.
As a part of the arrangement, the companies must correct their practices to make it easier for consumers to file complaints against the company and employees. The companies must provide a direct link on their Web sites to complaint forms and create and maintain a disciplinary history database for their collectors.
According to Cuomos assertion, consumers claimed that the companies failed to provide debt validation, engaged in third party disclosure, contacted debtors at work, threatened legal action when none was pending and other violations.
The three companies -- Creditors Interchange Receivable Management, LLC, Capital Management Services, LP and Tri-Financial, LLC -- have agreed, in separate settlements, to substantially reform their business practices in order to be in full compliance with the Federal Fair Debt Collection Practices Act (FDCPA) and New York's Debt Collection Procedures Act, according to Cuomos office.
The action comes less than a week after the New York Attorney Generals office announced a sweeping inquiry into the practices of accounts receivable management companies in the state of New York
Cuomo said in a press release that his office will continue to investigate the myriad deceptive practices that debt collection companies, debt settlement companies and others employ as a means to exploit consumers who are already down on their luck. He urged other companies involved in debt collection and debt settlement to follow the example of the three companies named Tuesday.
Cuomos office said that it relied on consumer complaints against the companies in the cases.
As a part of the arrangement, the companies must correct their practices to make it easier for consumers to file complaints against the company and employees. The companies must provide a direct link on their Web sites to complaint forms and create and maintain a disciplinary history database for their collectors.
According to Cuomos assertion, consumers claimed that the companies failed to provide debt validation, engaged in third party disclosure, contacted debtors at work, threatened legal action when none was pending and other violations.
About the Author:
Jonathan Summers is employed with a FDCPA Compliant debt recovery agency and is here to help you with debt collections
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