DC Attorney General Announces Settlement With Debt Collection Company Resulting in Forgiveness of $219,000 in Consumer Debt

Debt Collection  •  State AGs

On April 14, 2017, the District of Columbia Attorney General’s Office (AG) announced that it had entered into a settlement agreement​ with a California-based debt collection company and its owner arising from allegations that their debt collection practices violated the District of Columbia’s Consumer Protection Procedures Act and Debt Collection Law.

The third-party debt collector purchased and then attempted to collect debts allegedly owed by District of Columbia residents, mostly debts incurred from nonpayment of amounts owed on magazine subscriptions.  According to the AG, the company attempted to collect inaccurate debts that had already been settled or discharged, or that were not actually owed by consumers.  The company also allegedly did not maintain any record of collection letters sent to consumers, or any policies or procedures for its debt collection practices.

The settlement requires the company to return $1,194.15 in restitution for the debts it collected and pay a $2,500 civil penalty to the District of Columbia.  The settlement also requires the defendant to forgive $219,297.41 in uncollected consumer debt held by District of Columbia residents.

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