D.C. AG Racine Announces Settlement with Debt Collection Company

State Attorney General

Recently, D.C. AG Karl Racine announced a settlement with a Maryland-based debt collector that allegedly engaged in unlawful and deceptive practices in violation of D.C.’s Consumer Protection Procedures Act and Debt Collection Law. According to the press release, the debt collector, among other things, allegedly collected costs and legal fees from consumers without obtaining a supporting court order, left voicemails to consumers in violation of applicable law, and failed to sufficiently inform consumers about their right to make a debt validation request. Pursuant to the order, the debt collector must, among other things: (i) pay $45,000 (subject to adjustment) to D.C. for its investigative costs; (ii) pay restitution to affected consumers; (iii) “clearly and conspicuously” disclose to consumers that have orally requested the verification of a debt to do so in writing; and (iv) not collect or attempt to collect any amount for “court fees,” as defined in the order, unless a judgment or order has awarded such fees.