Daily Digest – September 6. WV AG Obtains Summary Judgment Against Collection Agency; Why New Yorkers Are Stressed About Debt

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The Daily Digest is sponsored by TCN, a leading provider of cloud-based call center technology for enterprises, contact centers, BPOs, and collection agencies worldwide. 

W.V. AG OBTAINS $200K SUMMARY JUDGMENT AGAINST COLLECTION AGENCY, OWNERS 

• The attorney general of West Virginia has obtained a summary judgment against a collection agency and its owners, which included nearly $200,000 in fines and a ban on trying to collect debts in that state. The judgment was obtained against Simple Recovery Solutions and its owners, Todd West and Alexander Simao. The defendants were accused of sending letters to 130 residents of West Virginian in an attempt to collect debts that did not exist. The company also did not have the necessary license or bond to collect on West Virginia.

WHY NEW YORKERS ARE STRESSED ABOUT DEBT

• Paying off debt is the number one cause of financial stress for individuals living in New York, according to a survey. And the New York Post spoke to a consumer advocate who thinks that the tactics of collection agencies are to blame for some of that stress. Calling the tactics “legally sanctioned daylight bank robbery,” the advocate, Susan Shin, says the number of complaints she has handled is “distressing.” According to the survey, the average amount of debt held by a New Yorker is about $50,000, including mortgages and student loans.

S.D. STATE-MANDATED COLLECTION CENTER NEARLY READY TO OPEN DOORS 

• State agencies in South Dakota that are unsuccessful at collecting debts will soon be able to refer those accounts to a state-run “obligation recovery center,” operated by CGI Technologies & Solutions. CGI will be then attempt to collect the debt and if it is unsuccessful, it can place the accounts to three other collection agencies.

OHIO AG FORMS COMMITTEE TO LOOK INTO STUDENT LOAN DEBT COLLECTIONS

• The attorney general of Ohio has formed an advisory group that will investigate the collection practices of student lenders after numerous complaints have been made regarding individuals being wrongfully sued or who have had massive fees added to small collection agencies. Among the groups represented on the committee are students, lawyers, representatives from colleges and financial institutions, state legislators and other public officeholders. A former chairman of Fifth Third Bank is heading the committee.

PAYDAY LENDING LEGISLATION TRIES TO MOVE FORWARD IN TEXAS

• State lawmakers in Texas are continuing to try and pass legislation that would regulate the payday lending industry and mirror many ordinances that have been passed at the municipal level in the Lone Star State, but lobbying groups have been successful in keeping the laws from being passed.  Meanwhile, the trade group representing payday lenders is touting that many of the comments filed by consumers with the Consumer Financial Protection Bureau have been positive.

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The Daily Digest is sponsored by TCN, a leading provider of cloud-based call center technology for enterprises, contact centers, BPOs, and collection agencies worldwide.