Oregon Department of Justice

Attorney General Ellen F. Rosenblum

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MINNESOTA DEBT COLLECTOR REQUIRED TO PAY $90,000 AND END ABUSIVE PRACTICES

April 8, 2011

Over 200 consumer complaints have been filed against Allied Interstate, Inc. 

Attorney General John Kroger today announced an agreement that requires a Minnesota debt collector that has prompted hundreds of consumer complaints to pay $90,000 and put a stop to its abusive practices.

"The Department of Justice will not tolerate any attempt to threaten, harass or mislead Oregon consumers as a means of doing business." said Attorney General Kroger. "When companies violate the law, we will hold them accountable."

Roughly 200 consumer complaints have been filed with the Department of Justice against Allied Interstate in the past five years, accusing the company of systematically violating numerous prohibitions under the Oregon and federal Debt Collection Practices Acts.

Among other things, the complaints allege that Allied Interstate repeatedly called Oregon consumers even after being told they were not the intended debtor; repeatedly calling and hanging up when someone answered the phone; revealing alleged debts to third parties without permission to do so; threatening legal action the company was not authorized to take; and using obscene or profane language and harassing third parties with repeated phone calls.

Under the agreement filed April 7 in Marion County Circuit Court, Allied Interstate is permanently barred from:

  • Making any misrepresentation in collecting or attempting to collect a debt;
  • Making any representation that a consumer owes a debt or the amount of a debt, unless there is a reasonable basis for making such representation;
  • Communicating with or continuing to call an Oregon resident once informed that they have called the wrong number, or once a resident has stated a desire not to be contacted;
  • Using an automated dialer to call Oregon consumers unless the company has verified the phone numbers belong to actual debtors;
  • Communicating with third parties about a consumer's debt without the consumer's consent or court permission;
  • Using obscene or profane language or harassing consumers or third parties with repeated phone calls; and
  • Making any other false or misleading statement in collecting a debt, including threatening action it does not intend to take.

Allied Interstate must also pay $90,000 dollars to the Oregon Department of Justice and an additional $50,000 if it fails to abide by any terms set forth in the agreement.

Senior Assistant Attorney General Janelle Factora Wipper and Investigator Dale Geiger handled the case for the Oregon Department of Justice.

Attorney General John Kroger leads the Oregon Department of Justice. The Department's mission is to fight crime and fraud, protect the environment, improve child welfare, promote a positive business climate, and defend the rights of all Oregonians.

Contact:

Tony Green, (503) 378-6002 tony.green@doj.state.or.us |
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