Keith Loria Jul. 6, 2010, 10:29am
DENVER (Legal Newsline) - Colorado Attorney General John Suthers has filed charges against a debt collection agency over the company's alleged failure to comply with an administrative order that bars it from debt collecting in the state.
The David Faith Corporation allegedly continued to contact consumers about debt collection services despite an order issued by Suthers' office in May that denied the company a license to practice and barred it from collecting any debts from state consumers. The corporation allegedly withdrew money from one consumer's bank account this week.
District Court Judge William Hood has issued a temporary order against the David Faith Corporation from further debt collection.
"Colorado requires that debt collection agencies be licensed before they can collect on debts from Colorado consumers," Suthers said. "Debt collectors that refuse to comply with Colorado's laws have no business operating in the state."
The Denver-based company is also accused of threatening consumers and partaking in fraudulent collection practices, including operating without a license. Chad Lee, the company's owner, also allegedly provided false information on the company's application when he tried to register for a license and failed to mention his criminal history.