ATLANTA (Legal Newsline) — Georgia Attorney General Chris Carr announced April 4 that National Check Resolution Inc. will pay $8.5 million to resolve allegations it violated the federal Fair Debt Collection Practices Act and the Georgia Fair Business Practices Act.
According to allegations, National Check Resolution, along with owner Samuel Tulumello and manager Rhonda Tulumello, committed the violations by telling consumers they had committed a crime and would be arrested if they did not pay the debt. Additionally, the defendants falsely alleged to be attorneys and failed to represent that they were in fact debt collectors.
Under the terms of the settlement, National Check Resolution will stop collecting on 11,980 accounts. This will save consumers more than $8,5 million. The defendants will also pay a $20,000 civil penalty and come into full compliance with the Fair Debt Collection Practices Act and the Georgia Fair Business Practices Act. The defendants will be monitored for three years, and if they make any further violations, they will be forced to pay $240,000 in civil penalties.
“Our office will hold debt collectors that try to coerce and intimidate consumers by employing abusive, deceptive and illegal tactics accountable,” Carr said in a statement.