DENVER (Legal Newsline) - Colorado Attorney General John Suthers filed a civil lawsuit on Monday against a licensed collection agency and its general manager for allegedly failing to pay clients on accounts placed for collection.
Apollo Credit Agency Inc. and James Saddoris, the company's general manager, allegedly violated the Colorado Fair Debt Collection Practices Act by failing to remit payments it owed clients. Suthers' Consumer Protection Section received multiple complaints from Apollo's clients alleging they were not paid on accounts placed with the agency for collection.
Apollo also allegedly failed to maintain its trust account with adequate funds to pay amounts due and owed to its clients.
"At this point, a receiver was appointed to ensure clients of Apollo are notified of the situation and that there is some accounting of what may ultimately be due to them," Suthers said. "The receiver will assist in the process so correct credits on payments are accounted for and to prevent additional collection efforts due to Apollo's lack of remittance of payments to creditors."
The Denver District Court appointed a receiver to take control of Apollo for 30 days and conduct an initial accounting to identify Apollo clients. The receiver will identify consumers and debtors who made payments to Apollo.
The court granted Suthers' motion for a preliminary injunction and ordered that Apollo's assets be frozen. In a related matter, Apollo's application to renew its license as a collection agency was denied in February.