The West Virginia Attorney General’s office has reached settlements with two collection agencies, Allied Interstate and Jefferson Capital Systems, and one debt buyer, Wilhelm, West, Kacey & Associates (WWKA). All three companies were being investigated for illegal collection practices. The companies agreed to pay restitution and cancel debts totaling $404,091.00.
Allied Interstate, an agency with offices worldwide, agreed to pay $50,000.00 to consumers, and for “consumer protection and educational purposes.” The AG’s office received an unusual number of complaints about the Allied Interstate calling individuals about debts someone else owed.
The Attorney General’s office began investigating Jefferson Capital Systems after receiving complaints that the company was collecting debts on Internet payday loans, which are illegal in West Virginia. The investigation revealed Jefferson Capital conducted a program in which it collected debts by offering consumers a new credit card, and transferring old debts to the new card after receiving a certain amount of payments.
In the settlement, Jefferson Capital agreed not to offer the program or any similar options in West Virginia unless it first registers in the state as a credit services company. Jefferson Capital also refunded $97,940.00 and cancelled debts totaling $77,691.00 to West Virginia consumers.
Wilhelm, West, Kacey & Associates, a debt buyer, agreed to cancel debts totaling $178,559.00. The company promised to stop collecting debts in West Virginia unless it becomes licensed to do so. WWKA also promised not to threaten lawsuits to collect debts that are past the statute of limitations.
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