CHARLESTON, West Virginia (Legal Newsline) — West Virginia Attorney General Patrick Morrisey has announced West Virginia consumers will receive close to $20 million in debt cancellation as part of a settlement with Cavalry Investments and Cavalry Portfolio Services.
Cavalry must stop any efforts to collect $19.7 million in consumer debt, owed by more than 2,847 consumers, and pay the state $350,000.
“This settlement provides significant relief directly to the affected consumers,” Morrisey said. “Companies operating in our state must respect our laws.”
Charges against Cavalry alleged the company engaged in debt collection practices without a valid West Virginia license and surety bond. The state requires both of these to pursue debt collection activities as part of the Collection Agency Act.
Cavalry has agreed to the deletion of affected consumers’ account information. As part of the settlement, Cavalry denied any wrongdoing.