Blog Enforcement Watch September 29, 2020

Arizona AG Sues Individual Operators of Debt Collection Business

On September 29, 2020 the Arizona Attorney General (AG) announced that it had filed a lawsuit in ​Arizona state court ​against two individual owners of debt collection businesses alleging that, on phone calls to consumers nationwide, they made false statements and threats to convince consumers to pay debts the defendants had no authority to collect.

According to the AG, the owners allegedly “impersonate[d] law enforcement officers and process servicers when calling consumers” and “use[d] spoofing software to make it appear their calls originate from government agencies.” The AG additionally alleges that the defendants used threats, including legal action, arrest, garnishment, liens, and freezing assets to convince consumers to pay allegedly unowed debts.

The lawsuit seeks restitution, civil penalties of up to $10,000 per violation, fees and costs, and injunctive relief.