DC AG Seeks Penalties from Debt-Purchasing Company for Collecting on Illegal Interest Rates

On September 9, the District of Columbia Attorney General announced that it filed a complaint in D.C. Superior Court against a debt-purchasing company, its wholly-owned subsidiary, and their principal, for violations of the District’s debt collection and usury laws.  The complaint alleges that the company purchased loans from a company that has since gone out of business.  The interest rates on those loans ranged from 3.7 to over 14 times the District’s maximum annual interest rate of 24%.  The complaint further alleges that the company then attempted to collect and collected interest at rates from District of Columbia consumers, in violation of District law.  The complaint seeks injunctive relief, restitution, and civil penalties of $1,000 per violation.