Georgia AG Reaches Settlement with Debt Collector for Alleged Unlawful Debt Collection Practices

​On August 12, 2021, the Georgia Attorney General’s Office (AG) announced​ it had entered into a settlement with a debt collector, resolving allegations that the company violated the Fair Debt Collection Practices Act (FDCPA) and the Georgia Fair Business Practices Act (GFBPA).

After conducting an investigation, the Georgia AG alleged that the company engaged in acts or practices in the course of debt collection that harassed and deceived consumers, such as by threatening consumers with arrest or imprisonment if they failed to pay their debt, failing to disclose in initial communications with consumers that the company was attempting to collect a debt, and failing to provide consumers, within five days of the initial communication, written notification containing certain information, as is required by federal law.

Under the terms of the settlement agreement, the company has agreed to cease its collection practices on Georgia consumer accounts and to turn over those accounts to the AG, representing a contract value of over $19.8 million in consumer debt.  The company has also agreed to pay a penalty of $41,500 and to bring its practices into compliance with the FDCPA and the GFBPA.