On April 5, 2017, the Colorado Attorney General’s Office (“Colorado AG”) announced that it had secured a judgment against a debt collection agency and two of its principals. The Colorado AG had accused the company of operating without a license and of deceptive collection practices. According to the Colorado AG, the company operated in the Denver area from early 2014 through January 2015, collecting money from thousands of consumers under its own name and various aliases.
A Colorado state judge found in favor of the Colorado AG, and concluded that the company was operating without a license and had committed deceptive and abusive practices, including fabricating criminal charges to threaten consumers into making payments. The court commented that it “appear[ed] almost as if Defendants looked to the statute to see what was prohibited and then used it as a guide to do those very things.”
The judgment requires the company to pay approximately $491,000 in restitution to consumers, penalties, and attorney fees. The company is also prohibited from doing business in Colorado or from collecting debts from Colorado citizens without proper licensing and full legal compliance.