MONEY MATTERS
18
AG James and CFPB Shut Down Predatory Debt Collection Operation
N
ew York Attorney General Letitia James and the Consumer Financial Protection Bureau (CFPB) on May 23, shut down a predatory debt collection operation that used deceptive and abusive tactics to illegally collect millions of dollars from hundreds of thousands of consumers. The debt collection operation — comprised of several companies including JPL Recovery Solutions — falsely threatened consumers with harsh consequences if they did not pay, inflated the true amount of debts owed, and contacted consumers’ friends, family members, and employers to harass consumers. As a result of today’s action by Attorney General James and CFPB, this debt collection operation, its owners, and managers are required to pay $4 million and are permanently banned from the debt collection industry. This resolves an earlier lawsuit filed against the operation by Attorney General James and CFPB. “This debt collection operation used illegal and deceptive tactics to prey on consumers, and now they are paying the price for the harm they caused,” said Attorney General James. “Predatory debt
AGJames. Editorial credit: a katz / Shutterstock.com
collectors make their profit by targeting hardworking consumers and then illegally saddle them deeper into debt. These debt collectors used harassing calls and false threats to coerce consumer to pay, actions that are both illegal and downright shameful. Today’s action should send a strong message to debt collectors nationwide that we will not hesitate to use the full force of the law to hold them accountable if they hurt consumers.” “It is illegal for debt collectors to orchestrate smear campaigns using social media to extort consumers into paying up,” said CFPB Director Rohit Chopra.
“Our action with the New York Attorney General bans the ringleaders of this operation from the industry to halt further misconduct.” This debt collection operation was comprised of interrelated businesses based out of a location in Getzville, New York. Together, they purchased defaulted consumer debt for pennies on the dollar. The debt came from high-interest personal loans, payday loans, credit cards, and other sources. The operation then attempted to collect debts from up to about 293,000 consumers, generating gross revenues of approximately $93 million between 2015 and 2020. The companies involved in this operation included JPL Recovery Solutions, LLC; Regency One Capital LLC; ROC Asset Solutions LLC, which does business as API Recovery Solutions; Check Security Associates LLC, which does business as Warner Location Services and Orchard Payment Processing Systems; and Keystone Recovery Group. These companies were owned by Christopher Di Re, Scott Croce, and Susan Croce, and were managed by Brian Koziel and Marc Gracie.
Attorney General James and CFPB alleged that the operation used deceptive and harassing methods, violating several state and federal consumer protection laws. Specifically, the complaint alleged that the owners, managers, and companies used the following illegal tactics to collect debt: •Falsely claimed arrest and imprisonment •Lied about legal action •Inflated the debts and misrepresented amounts owed •Created “smear campaigns” •Harassed people with repeated phone calls •Failed to provide legally mandated disclosures As a result of the settlement, this operation is required to pay $2 million to New York and $2 million to CFPB. If they fail to pay the $4 million judgment in a timely manner, they will be required to pay another $1 million. This case follows a long line of actions taken by Attorney General James to seek justice on behalf of consumers in New York state. l
Creditors’ Harassments! Lawsuits! Foreclosures! Get the legal help you need NOW! Call 718-222-3155!
GET YOUR BANKRUPTCY CONSULTATION Documents Required: Save Your: *Home *Business *Car
*Health *Peace of Mind/Health *Marriage/Relationship
*List of debts *Your most recent tax returns *Correspondence from creditors *Lawsuit documents *Social Security and ID *List of assets
Filing a Chapter 7, 11 or 13 bankruptcy may be your only choice!!!
Call 718-222-3155 for a consultation today!
The Law Offices of Figeroux & Associates, 26 Court Street, Suite 701, Brooklyn, NY. Visit www.311bankruptcy.com VISIT OUR WEBSITE WWW.THEIMMIGRANTSJOURNAL.COM FOR MORE IMMIGRATION NEWS & UPDATES
