Thursday, June 21, 2012

WV AG Reaches $700K+ Settlement With Five Debt Collectors Over Accusations Related To Unlicensed Activity, Illegal Internet Payday Loans

In Charleston, West Virginia, The West Virginia Record reports:

  • West Virginia Attorney General Darrell McGraw announced [] that his office has reached settlements with five out-of-state debt collection agencies, netting more than $700,000 for state consumers. The five companies are Frontier Financial Group of Henderson, Nev.; United Debt Holding of Castle Rock, Colo.; Skutr Financial of Las Vegas; USCB Corp. of Archibald, Pa.; and Mauconduit and Luna of Hapeville, Ga.

  • Under the agreements, the companies are required to pay a total of $772,286 in refunds and cancelled debts to settle charges that they engaged in unlawful debt collection in West Virginia.
  • The attorney general began investigating the companies after receiving complaints that four of them were not licensed in the state and that all five were collecting illegal Internet payday loans. [...]
    "Internet payday loans are harmful to consumers and have never been legal in West Virginia," the attorney general said. "My office will continue to intervene whenever any agency, licensed or otherwise, is collecting unlawful debts here."

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