Disciplinary actions: Collection agencies

October 2008

Kennesaw, GA — Nationwide Credit, Inc.

  • Finding: Repeatedly telephoned debtor 14 times during the time period from October 24 through November 7, 2004, in excess of the 3 times per week allowed by law.
  • Action:
    • Respondent and its agents ordered to not commit violations of RCW 19.16.250(12) and not make contact with debtors with greater frequency than allowed by law.
    • Ordered to review and share the specific requirements and presumptions of RCW 19.16.250(12) with all employees who contact debtors in Washington State.
    • Fined $4,000.

Harrisburg, PA – Capital Recovery Agency, Inc.

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

September 2008

St. Joseph, MO – Tempest Recovery Services, Inc.

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

Harrisburg, PA – Capital Recovery Agency, Inc.

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

May 2008

Vancouver, WA – Ryan McPeak, Ray L. Hannaman, Corporate Financial Investigations, LLC

  • Finding: In the course of the Department’s investigation of a complaint received in November 2006, the licensee failed to:
    • pay their clients funds owed.
    • maintain the required records at the licensed location.
    • maintain an office open to the public.
    • keep their trust account funds separate from the business account funds and used the trust account funds to pay business expenses.
  • Action:
    • License revoked with no right to reapply for a Collection Agency License within 10 years from the effective date of the order or until all conditions of the order have been satisfied.
    • Fined $10,000.

February 2008

Edmonds, WA and Colorado Springs, CO —Innovative Collection Systems, LLC

  • Finding: Failed to maintain an office in Washington State.
  • Action: Licenses revoked.

October 2007

Farmingdale, NY — Professional Credit Services, Inc.

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

Tacoma, WA — James G. Smith, Recovery Management Solutions, Inc.

  • Finding: In the course of the Department’s investigation started in September 2006, the licensee failed to:
    • notify the Department of its change of its principal place of business and of its intent to change its trade name.
    • maintain an office open to the public.
    • maintain the required records.
    • maintain the required records at the licensed location.
  • Action:
    • License revoked with no right to reapply until October 1, 2012.
    • James G. Smith prohibited from serving as an owner, officer, director, or managing employee of any licensed collection agency.
    • Within 30 days of the effective date of the order, the Department is to conduct an audit to verify no collection agency business was conducted by Respondents during the time period following August 31, 2006; the date Respondent’s collection agency license expired. If the audit identifies amounts collected during the time period following August 31, 2006, those amounts shall be returned to the owners of the accounts as required by law.
    • Fined $3,000 to be paid within 30 days of completion of the audit. If there are no audit findings, the fine will be waived.

September 2007

East Amherst, NY — Collins Law Office LLC

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

Las Vegas, NV — Sure Tech Recovery, LLC

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

Thousand Palms, CA — Marauder Corporation dba Collection Professional Services

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

July 2007

Chandler, AZ — Allied Interstate, Inc.

  • Finding: Repeatedly telephoned a debtor 32 times during the time period from February 7 through April 10, 2005, in excess of the 3 times per week allowed by law.
  • Action:
    • Respondent and its agents ordered to not commit violations of RCW 19.16.250(12) and not make contact with debtors with greater frequency than allowed by law.
    • Ordered to review and share the specific requirements and presumptions of RCW 19.16.250(12) with all employees who contact debtors in Washington State.
    • Fined $5,500.

Dover, DE — James, Stevens and Daniels, Inc.

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

Greenville, SC — Clearcheck, Inc.

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

May 2007

Greenville, SC — Resurgent Capital Services, LP

  • Finding: In the course of the Department’s investigation of a complaint received in October 2005, the licensee failed to list their address on collection notices, and itemize the debt on their collection notices.
  • Action:
    • Agrees to itemize the payment notices it sends to debtors in accordance with RCW 19.16.250(8).
    • Must provide the Board with a copy of all collection notices used that now demonstrate compliance with the law no later than 30 days after the effective date of the order.
    • Fined $3,000 to be paid within 10 days from the effective date of the Stipulated and Agreed Order.

Philadelphia, PA — Academy Collection Service, Inc.

  • Finding: In the course of the Department's investigation of a complaints received in June 2006, the licensee contacted debtors more than 3 times in a single week and failed to itemize the debt on their collection notices.
  • Action:
    • Licensee and its agents ordered not to commit violations of RCW 19.16.250(12), and not to make contact with debtors with greater frequency than allowed by law.
    • Ordered to review and share the specific requirements and presumptions of RCW 19.16.250(12) with all employees who contact debtors in Washington State.
    • Ordered to review the specific requirements and presumptions of RCW 19.16.250(8) and ensure all their notices to Washington State debtors meet those requirements.
    • Fined $5,500 to be paid with the Stipulated and Agreed Order.

April 2007

Seattle — ABC Legal Services, Inc. dba ABC Special Collections

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

January 2007

Buffalo, MN — Go-More Financial, Inc.

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

Edmonds, WA and Oakbrook, IL — Maximus, Inc. dba Virginia Maximus, Inc.

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

July 2006

Seattle, WA and Horsham, PA — NCO Financial Systems, Inc.

  • Finding: In the course of the Department's investigation of complaints received in April 2004 and January 2005, the licensee contacted debtors more than 3 times in a single week and more than once per week at work.
  • Action:
    • Formally reprimanded.
    • Licensee and its agents not to commit violations of RCW 19.16.250(12), and not to make contact with debtors with greater frequency than allowed by law.
    • Ordered to review and share the specific requirements and presumptions of RCW 19.16.250(12) with all employees who contact debtors in Washington State.
    • Fined $3,000 to be remitted with the signed Agreed Order.

June 2006

Zanesville, OH — Alliance Recovery Management, Inc.

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

May 2006

Ephrata — Healthcare Management Associates, LLC

  • Finding: Failed to maintain the required $5,000 surety bond.
  • Action: License revoked.

April 2006

Everett — Matthew Taylor, Kenneth Cuthbert, Liberty Credit, Inc.

  • Finding: In the course of the Department’s investigation of a complaint received in September 2005, the licensee failed to:
    • pay their clients funds owed.
    • maintain an office open to the public.
    • maintain the required records at the licensed location.
    • maintain the required surety bond.
    • notify the Department of a judgment against the licensee.
  • Action:
    • License revoked for 10 years from the effective date of the order.
    • Must comply with all conditions of the order.
    • Fined $7,500 to be paid within 30 days from the effective date of the Final Order of Default.

Please contact us for information about disciplinary actions before April 2006.