Indiana AG Secures $1.3 Million Default Judgment Against Illinois-based Debt Collector

On Ap​ril 14, 2021, the Indiana Attorney General (Indiana AG) announced that his office obtained a default judgment against an Illinois-based debt collection agency and the agency’s owner. The original complaint filed by the Indiana AG alleged the agency violated Indiana’s Deceptive Consumer Sales Act by improperly threatening borrowers with legal action, such as liens and garnishments, without first obtaining judgments. Additionally, the Indiana AG alleged the agency operated as a debt collector within the state despite being denied the requisite license to do so and an earlier court judgment barring any debt collection conduct by the agency within the state. Operating a debt collection agency without a license constitutes a violation of Indiana state law.

​The debt collection agency failed to respond to the complaint, which was originally filed in September 2020. The court later entered a default judgment against the agency and its owner. The judgment includes $300,000 in restitution and over $1 million in civil penalties, as well as injunctive relief prohibiting the defendants from engaging in debt collection in or from the State of Indiana.