_Maine News - Cont by lifemate


									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 !!!
cab@state.co.us 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.                       (mlarsen@finance.idaho.gov) 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
                                             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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