Washington AG announces settlement with debt collection agency



On June 8, the Washington Attorney General announced a settlement with a Colorado-based collection agency for alleged illegal debt collection practices in violation of Washington’s Consumer Protection Act and Credit Agencies Act. recovery, including the assessment of fees and costs to consumers, even when no funds were captured in the garnishment, operating without a license for more than a year and failing to provide the garnishment exemptions- legally required stopover for state residents. Under the consent decree, the debt collection agency must reimburse approximately $ 475,000 in restitution to up to 5,000 state residents and set aside up to $ 250,000 in fees and costs to resolve the lawsuit. The collection agency is also to pay $ 414,000 to the AG’s office for the cost of the investigation and to fund the ongoing work of the office’s Consumer Protection Division. In addition to paying the fines, the agency is also required to: (i) stop charging consumers from whom the company has not collected funds; (ii) provide consumers with legally required garnishment exemptions; and (iii) incorporate the evidence required by law when submitting requests for garnishment judgment to court.



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