Minnesota Debt Collector Agrees To Cough Up $1.75M To Settle Federal Allegations Of Illegal Practices

In Minneapolis, Minnesota, the Minneapolis Star Tribune reports:

• Allied Interstate Inc., a large Minnesota debt collection agency with a history of consumer complaints and state fines, has agreed to pay $1.75 million to settle federal allegations that it broke the law by trying to collect debts people didn't owe. The Federal Trade Commission (FTC) said it is the second-largest civil penalty it has obtained against a debt collection firm. It comes amid rising complaints of abusive collection tactics and calls by state and federal legislators for more regulation.(1)

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• Many debt collectors use software, known as "robo dialers," that automatically call the same people multiple times a day. With Allied, such calls continued even after people insisted the firm was calling the wrong person or that they did not owe the debt, the FTC alleged in a federal lawsuit.

For more, see Local debt collector to pay $1.75 million (Federal officials said they are trying to send a message to other debt collectors to stop harassing people over debts they don't owe).

(1) Go here for:

• Lawsuit - U.S. v. Allied Interstate, Inc. (Complaint for Civil Penalties, Injunctive Relief, and Other Relief),
• Consent Decree,
• Reasons for Settlement,
• FTC News Release.