Richard Cordray (D)
CLEVELAND (Legal Newsline) - Ohio Attorney General Richard Cordray has filed suit against a locally owned debt collections agency over allegations the company violated the state's Consumer Sales Practices Act and the federal Fair Debt Collection Practices Act.
Solon-based National Enterprise Systems, Inc. (NES) "harassed" over 200 consumers in an attempt to collect unpaid debt, according to the attorney general.
Beginning in spring 2008, Cordray's office began a series of investigations into NES's fraudulent collection services, after receiving hundreds of complaints from consumers claiming the company had targeted family members and relatives.
"Everyone has the right to be treated fairly under Ohio law, regardless of possible debt owed," Cordray said.
Last year's investigation revealed NES had allegedly violated laws by attempting to collect debts from consumers that did not owe, failing to verify debts and made unauthorized bank withdrawals from consumer accounts.
The lawsuit asks the court for NES to stop all abusive practices, reimburse consumers, and asses a civil penalty of $25,000 for each violation.
Aside from Ohio, West Virginia Attorney Darrell McGraw today filed a similar suit against NES over illegal debt collection practices.