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In addition, a new rule was adopted requiring agencies to disclose their name NCA Financial Services, Inc. dba National Credit Acceptance, Inc. (CA) NACARA REPORTER and contact information upon request and North Star Capital Acquisition, LLC (NY) North American Collection Agency Regulatory Association to disclose to clients when the agency will www.NACARA.info December 2008 Issue return accounts. Copies of the new law In addition, two agencies signed and rules are available at stipulations and refunded $4,248 to www.ago.state.co.us/CADC/CADCmain.c Colorado consumers for adding fees for payment by credit card, telephone, or PRESIDENT’S MESSAGE make it. If there is enough interest, there fm.html. are a number of fun and entertaining things online: Dear NACARA Members: that we can do either on Monday or Amsher Collection Services, Inc. (AL) Tuesday evening of the Conference. We IT’S TIME FOR YEAR-END Legal Action First National Collection Bureau, Inc. can correspond more about that as we get PLANNING – PLEASE MARK YOUR In 2008, we took the following legal and (NV) closer to the time of the conference. I just CALENDARS FOR THE 2009 administrative action. All action is public wanted to get the dates confirmed so that NACARA ANNUAL CONFERENCE and copies are available by e-mailing you can put this on your calendars. Within IN BOISE !!! firstname.lastname@example.org or calling (303) 866-5706. the next couple of months – give or take – The 2009 NACARA Annual Conference I’ll get you the information you’ll need to In July we filed a lawsuit in state district will be held at the Grove Hotel in beautiful get registered at the Grove Hotel. We’ll court alleging violations of the Colorado Boise, Idaho from Sunday August 30th also be working on the agenda for the Fair Debt Collection Practices Act against through Tuesday September 1st 2009. conference, so if you have any ideas or JBC & Associates, JBC Legal Group, other More information concerning the annual suggestions don’t be shy. related entities, Jack Boyajian, Marvin conference will forthcoming. I am happy Brandon, and Karen Nations. Motions to Best wishes! And remember, don’t to report that the Grove Hotel has dismiss and to vacate defaults are pending. mistake NACARA for NACARA. Rest confirmed its government rate to assured that there will be no makeup NACARA participants, which is $86 per displays when we gather in Boise in 2009. Based upon consumer complaints and/or night plus the usual add-ons (I think it’s a searches of state court records, we 13% hotel tax). Each person beyond a --Michael Larsen discovered that the following agencies double occupancy is $15. All in all, it’s a Consumer Finance Bureau Chief were collecting without a license. The great bargain – which is timely considering Idaho Department of Finance agencies signed stipulations and paid a current economic conditions and budget Office Phone: 208-332-8000 total of $68,800 in fines and costs: constraints. Office Fax: 208-332-8096 Central Portfolio Control, Inc. (MN) If you any have any questions regarding 2008-2009 NACARA OFFICERS Crown Asset Management (GA) the 2009 NACARA Annual Conference, President: Mike Larsen, Idaho Dodeka, LLC (WA) Tom Kane of the FTC provided the please feel free to contact me by e-mail Vice-President: Sheryl Sailer, North Dakota First Resolution Investment Corp. (NV) view from Washington. (email@example.com) or Secretary-Treasurer: Peggy Matson, Arkansas Legal Collection Company (CO) telephone: (208) 332-8060. Idaho looks Director: Jack Watson, Arizona Midland Funding, LLC (CA) forward to hosting the 2009 NACARA Director: Kelly Mack, Maryland Midland Funding NCC-2 Corp. (CA) Conference. I hope that each of you can NEWSLETTER: Will Lund, Maine MRC Receivables Corp (CA) STATE NEWS News from Idaho language in their unlicensed collection The collector failed to give mini Mirandas, by our Collection Agency Board members from Mike Larson attempts. failed to advise 30 day notice to dispute, on November 19, 2008 at their quarterly NACARA President falsified collection agency documents to Board meeting for feedback in perhaps 2) STEPHEN WHITE, d/b/a AMERICAN In Idaho, we’re seeing a proliferation of CREDIT (Redding, mislead, failed to advise "respondent is utilizing this form. so-called ―mortgage modification services‖ California) – September 18, 2008-- Cease licensed by the MN Dept of Commerce" Another issue of concern for the Maryland which, under the Idaho Collection Agency and Desist Order for unlicensed credit on notices. Board is "change of control" procedures Act, require licensing as ―credit repair activities. NCO FINANCIAL SYSTEMS, INC. Lic# which we have just revamped. We are counselors.‖ We’re told that many CA20098447 sending out an Advisory Notice on this mortgage brokers and loan originators are 3) FINANCIAL FREEDOM RESOURCES, INC. (Clearwater, Against: Collection Agency issue so that the collection agencies being solicited to become ―mortgage Location: HORSHAM, PA operating in Maryland will be aware that modification specialists‖ to act as Florida) – September 18, 2008--Order to Cease and Desist for unlicensed debt/credit Action: Other/Consent when there is a change of control to the homeowners’ agents – for a hefty fee – to Signed: 4/23/2008 $10000 Fine business certain requirements must be met secure mortgage loan modifications for counseling and credit repair activities. File # CA 2800583 MJK such as a completed character distressed homeowners with unsuitable 4) DEBT RELIEF USA, INC. (Addison, Allegation: questionnaire for the new controlling loans who are now facing possible Texas) – September 10, 2008-- Consent Allege collector contacted debtor's parents person, and surety bond amendments. foreclosure. Order for unlicensed credit counseling without authorization, and provided false activities. Respondent agreed to refund Colorado News for NACARA information to the Department. $201,829.35 in fees paid by Idaho from Laura Udis residents and paid $2,500 in investigative NCO FIN SYS INC Lic# CA20203236 Administrator costs and attorney fees. Against: Collection Agency Statutory Amendments & New Rules Location: PHOENIX, AZ 5) PARKER ELLIOTT, INC. (Newport The Colorado Fair Debt Collection Action: Other/Consent Beach, California) – August 29, 2008-- Practices Act was amended in 2008 due to Signed: 10/8/2008 $2500 Fine Order to Cease and Desist for unlicensed a periodic review. Significant changes File # CA 2802078 MJK collection activity and violations of the include: requiring the first notice to Allegation: FDCPA. disclose that a consumer has a right to Collector contacted alleged debtor after cease communication and the 6) ACCESS RECOVERY SERVICE, being informed alleged debtor was consequences thereof, clarifying that the INC., d/b/a PATIENT ACCOUNT CARE represented by an attorney Colorado Collection Agency Board is and MICHELLE MUSIC, f/k/a Link to MN actions: advisory, repealing the collections MICHELLE JAMISON (Boise, Idaho) – http://www.state.mn.us/portal/mn/jsp/conte manager competency exam, extending the Mike Larsen, President August 19, 2008—Consent Order for nt.do?subchannel=- requirement of a new license application to In other news, we have taken several various violations of the Idaho Collection 536892969&programid=536913795&sc3= changes of ownership in a limited liability recent enforcement actions, including: Agency Act including trust account null&sc2=null&id=- corporation, requiring agencies to maintain 1) TOPCO FINANCIAL SERVICES, violations. Respondent was ordered to 536881350&agency=Commerce a toll-free telephone number, increasing INC. (Everett, Washington) – September immediately cease and desist from the maximum fine from $1,000 to $1,500 30, 2008-- Order to Cease and Desist for misappropriating, transferring, or News from Maryland per violation, and extending the date of the unlicensed collection activity. The Order converting client funds in violation of the from Kelly Mack next review to 2017. also alleges that Respondent’s Act. The Department briefly impounded The universal application form which was representatives used profane or obscene Respondent’s bank accounts. presented at the conference was reviewed WILLMAR COLLECTION SVC The order required the Respondent to administrative penalty and $500 Lic# CA8002438 either find a buyer or surrender its license. investigative costs and attorney fees. d/b/a WILLMAR COLLECTION 7) DEBT SETTLEMENT USA, INC. SERVICE AGENCY (Scottsdale, Arizona) – August 8, 2008-- Against: Collection Agency Consent Order for unlicensed credit Location: WILLMAR, MN counseling activities. Respondent agreed Action: Revocation/Consent to refund approximately $111,000 in fees Begin: 8/27/2008 End: Indefinite paid by Idaho residents, and paid $1,500 in Signed: 8/27/2008 investigative costs and attorney fees. File # CA 2701353 KRJ 8) MCT GROUP, INC. (Redondo Beach, Allegation: California) –July 31, 2008-- Order to Allege collector failed to remit client funds Cease and Desist for unlicensed collection in a timely manner and used those funds activity. Mike Kaehler worked closely with Kurt for personal and business expenses such as Johnson to host the recent NACARA gas, groceries, tax liabilities and personal 9) DMB FINANCIAL, LLC (Beverly, Outgoing NACARA President Kurt meeting in Minneapolis. vacations. Massachusetts) –July 25, 2008-- Consent Johnson used his honed auctioneer Order for unlicensed credit counseling. skills to run a tight and organized by NACARA, it was approved to move WILLIAM E SOBIECK Respondent agreed to refund $61,000 in annual meeting. forward. Although still in its beginning Lic# DC3001657 stages, the Uniform Licensing project has consumer restitution and paid $1,500 and News from Minnesota Against: Debt Collector investigative costs and attorney fees. gained momentum and we are in the Location: WILLMAR, MN from Mike Kaehler process of pursuing all licensing states to Action: Revocation/Consent 10) NATIONAL CREDIT MN Department of Commerce be involved. Begin: 8/28/2008 End: Indefinite ACCEPTANCE, d/b/a NATIONAL Signed: 8/28/2008 CREDIT ACCEPTANCE, INC. Back in late April of 2008, we began Recent enforcement actions: File # CA 2701353 KRJ (Sacramento, California) – June 27, 2008-- the process of putting together various PEOPLE FIRST RECOVERIES LLC Allegation: A civil enforcement lawsuit was filed in ideas for a Uniform Licensing application Lic# CA20462740 Allege collector failed to remit client funds the Fourth Judicial District Court, Ada for collection agencies across the country. Against: Collection Agency in a timely manner and used those funds County, Idaho, alleging unlicensed Along with Idaho, Connecticut, and North Location: MINNEAPOLIS, MN for personal and business expenses such as collection activity in violation of the Idaho Dakota, the state of MN spearheaded an Action: Cease & Desist/Consent gas, groceries, tax liabilities and personal Collection Agency Act and in violation of effort to address the concern by the Signed: 9/19/2008 $10000 Fine vacations. a Cease and Desist Order previously issued collection industry and the ACA for File # CA 2802017 KRJ by the Director. Judgment ultimately uniformity throughout the industry. Allegation: MCCARTHY BURGESS & WOLFF INC entered in favor of the Department for Through weeks of meetings and several Collector received notification that a Lic# CA20570925 $90,000 in civil penalties. drafts, the Uniform Application idea began debtor could not receive phone calls at Against: Collection Agency to take shape, moving us close enough to Location: CLEVELAND, OH 11) DEBT EQUITIES, LLC (Golden work and was given a home number. present the idea to our NACARA members Action: Other/Consent Valley, Minnesota) – April 14, 2008 -- Collector then called the debtor at place of at the 2008 NACARA conference in Signed: 8/27/2008 $10000 Fine Consent Order for unlicensed collection employment to "verify" they could not Minneapolis. Through a unanimous vote File # CA 2801969 MJK activity. Respondent paid $2,500 receive phone calls and proceeded to attempt to collect the debt. Allegation:
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