MEMBER ALERT

WEST VIRGINIA ATTORNEY GENERAL SETTLES WITH DEBT BUYER AND CANCELS OVER $6.6 MILLION DOLLARS IN CREDIT CARD DEBT

The Attorney General of West Virginia has announced that his office has entered into a settlement agreement with Financial Credit Services (“FCS”) and canceled debts in the amount of over six million dollars.

The investigation stemmed from consumer complaints that FCS was collecting debts in West Virginia without a license and that FCS threatened to file suits when it did not intend to take these actions.  The Attorney General alleged that FCS did not have any verifiable proof of the debts it sought to collect other than computer spreadsheets.

In addition to relieving consumers of the alleged indebtedness, FCS also agreed to refund all payments collected.

Attorney General McGraw stated “My office remains concerned about the debt purchasing industry, which typically purchases accounts for pennies on the dollar and rarely obtains any proof of the debt that would be admissible as evidence in a court.  This practice is troublesome because state and federal laws require that collection agencies be able to verify a debt when disputed by consumers, an important obligation to consumers that debt purchasers can rarely meet.  Notwithstanding our concerns, I commend FCS for granting this important relief to West Virginia consumers despite the fact that so few consumers were contacted.”

To see the West Virginia Press Release, please click here.

This Alert is in no way intended to be legal advice and members are encouraged to consult with counsel of their choice.