North Carolina AG Enters Into $23 Million Settlement with Debt Collector

On October 11, 2022, the North Carolina Attorney General’s Office (NC AG) announced that it had entered into a consent order with certain Texas-based debt collection companies, resolving allegations that those companies engaged in illegal debt collection practices in violation of various state statutes.  In 2019, the NC AG filed a law​suit in North Carolina state court alleging that from 2012 to 2018, the companies conducted debt collection practices in the state without the necessary registration or permits, sent customers unsigned and simulated court notices and criminal summonses, and threatened consumers with arrests and jail time.

Under the consent order​, the companies agreed to a prohibition on collecting debt in North Carolina and agreed to pay $223,018.98 in consumer refunds, $22,934,07​5.17 in consumer debt forgiveness, $1,475 in unpaid business registration fees, $20,000 in attorney fees and investigation costs, and $6,000 in civil penalties.