West Virginia AG Reaches Settlement with Debt Collection Firm


On July 3, West Virginia Attorney General (AG) Darrell McGraw announced that his office had reached an agreement with a debt collection firm for allegedly engaging in “unlawful and threatening” debt collection practices and attempting to collect debts without being properly licensed. Under the terms of the settlement, the company will be required to pay $1.7 million in refunds and cancelled debts to 124 West Virginians. The AG’s Consumer Protection Division started investigating the company in January 2012 after receiving a complaint about its debt collection practices. According to the AG’s investigation, the debt collection firm engaged in a “pattern of abusive collection methods” which included threatening to arrest consumers for non-payment of debts.


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