DENVER (Legal Newsline) - Colorado Attorney General John Suthers announced on Wednesday that his office has filed a lawsuit against a Denver-based debt collection agency and its CEO for allegedly violating state consumer protection statutes.
Regent Asset Management Solutions Inc., and its CEO, Michael A Scata, allegedly engaged in the unlicensed collection of debt in Colorado.
The lawsuit alleges that even though Regent Asset's license expired in July, the company continued to collect debts from state consumers, a violation of the Colorado Fair Debt Collection Practices Act.
Regent Asset Management Solutions also allegedly failed to provide consumers with evidence of the debts it was attempting to collect, leaving consumers with little to no information on how to determine the accuracy of their debts.
"The legislature enacted Colorado's debt collection laws and licensing requirements so consumers can be sure the companies that contact them are playing by the rules," Suthers said.
"We are committed to vigorously investigating and prosecuting companies operating in Colorado that attempt to fly under the radar or flout the Colorado Fair Debt Collection Practices Act and our other consumer protection laws."
The lawsuit also alleges that the company took shortcuts in its business practices, including not sending out required notices concerning the amount due, the creditor's name, the consumer's right to dispute the debt, and the right to obtain the name of and address of the original creditor.