Oregon AG settles with Minn. debt collector

Bryan Cohen Apr. 11, 2011, 2:44pm


SALEM, Ore. (Legal Newsline) - Oregon Attorney General John Kroger announced an agreement on Friday that requires a Minnesota debt collector to pay $90,000 and end its allegedly abusive practices.

Approximately 200 complaints have been filed about Allied Interstate Inc. with the Department of Justice over the past five years. The complaints allege that the company violated numerous prohibitions under the Oregon and Debt Collection Practices Acts.

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

Allied Interstate allegedly called Oregon consumers even after being told they were not the intended debtor, revealed alleged debts to third parties without permission to do so, threatened legal action the company was not authorized to take, used obscene or profane language and harassing third parties with repeated phone calls, and repeatedly called and hung up when someone answered the phone.

The agreement, which was filed in Marion County Circuit Court on Thursday, requires that Allied Interstate cease multiple alleged practices, including making any misrepresentation in collecting or attempting to collect a debt, using an automatic dialer to call Oregon consumers unless the company has verified the phone numbers belong to actual debtors, or making any false or misleading statements in collecting a debt.

Allied Interstate is also required to 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.

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