Debt Collection Agency Hit With $1.3 Million Default Judgment Over Unlicensed Collections Activity

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  • Indiana AG Todd Rokita obtained a default judgment and a permanent injunction against debt collection agency New Britain Financial, LLC (“NBF”) and its owner Nelson Macwan for allegedly acting as a collector without a license and engaging in deceptive and abusive debt collection practices in violation of the Indiana Deceptive Consumer Sales Act.
  • As previously reported, the complaintalleged that NBF continued its debt-collection activities after its debt collection agency license was not renewed by the Indiana Secretary of State, and further engaged in unfair and deceptive practices such as falsely threatening consumers with lawsuits, arrests, garnishments, and liens.
  • The default judgment awards $1.3 million to the state, including $300,000 for restitution to affected consumers and $1 million in civil money penalties. The default judgment also permanently enjoins NBF and Macwan from engaging in debt collection activity in or from Indiana.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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