Illinois AG Hits Debt Collector With Suit Alleging Variety Of Intimidation Tactics To Illegally Squeeze Cash From Consumers

From the Office of the Illinois Attorney General:

• [T]he Attorney General took action against a Skokie-based debt collector, PN Financial Inc., filing suit in Cook County Circuit Court. Madigan said PN Financial emerged last year as one of the most egregious cases of illegal debt collection during her tenure as Attorney General.

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• Madigan’s lawsuit against PN Financial and owner, Nelson Macwan, of Skokie, alleges numerous violations of state and federal laws that protect Illinois consumers from off-limits debt collection tactics. Madigan alleged PN Financial acted illegally by:
  
  Revealing information about debts to people other than the consumer, including employers or family members;
  
  Fronting as a law firm and intimidating consumers with fake court case numbers on letters sent to consumers to falsely represent they had been sued for failure to pay a debt;
  
  Debiting more money from consumers’ bank accounts than consumers authorized, causing some to incur overdraft fees; and
  
  Accessing consumers’ credit reports without authorization to intimidate them to pay alleged debts.
  


• Additionally, Madigan said in some instances PN Financial attempted to collect debts it was not authorized to collect. As a result, some consumers paid PN Financial, without realizing they didn’t owe any outstanding balances to the collection company, and reported losing at least $9,000. PN Financial also contacted other consumers over debts that had already been paid off.



• Fifty-two consumers have filed complaints with Madigan’s office against PN Financial. The Chicago Better Business Bureau has received 82 complaints against the company.

For the Illinois AG press release, see Madigan: 2011 Consumer Complaints Show Debt Collectors Using Illegal Abusive Tactics.

For the lawsuit, see The People of the State of Illinois v. P.N. Financial Inc.