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Attorney General Jon Bruning today announced a multi-state settlement with debt collector NCO Financial Systems, Inc. (NCOF). The 18-state agreement makes $50,000 restitution available to Nebraska consumers affected by misleading and abusive debt collection practices by NCOF.
“Nebraska consumers should not be misled or bullied by debt collectors,” said Bruning. “This settlement helps to ensure NCOF changes its business tactics and follows the law.”
As part of the settlement, NCOF agreed to comply with all applicable federal and state laws. In addition, the company agreed to notify consumers about their rights under the laws, notify credit reporting agencies of consumer disputes, provide compliance reports to the states and institute written policies and procedures.
In total, NCOF has agreed to reserve $950,000 for consumer claims. Each of the 18 states involved in the settlement is reserved $50,000 for affected consumers with valid claims.
Valid claims must meet one of the following criteria:
1. The consumer paid NCOF a third-party debt the consumer did not owe.
2. The consumer overpaid interest on a third party debt that was not supported by the underlying agreement between the debtor and original debt holder.
3. The consumer paid more on a debt than the amount NCOF had agreed to collect to settle the account.
Nebraska consumers who believe they have a valid claim should contact the Attorney General’s Office at (800) 727-6432. Valid claims will be submitted to NCOF who will then provide payments to eligible consumers.
The company will also pay $575,000 to the states for consumer protection enforcement. Nebraska will receive $26,562.50 to the settlement cash fund.
Nebraska was joined in the settlement by Alaska, Arkansas, Idaho, Illinois, Iowa, Kentucky, Louisiana, Michigan, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, Vermont, and Wisconsin.
Attorney General Jon Bruning today announced a multi-state settlement with debt collector NCO Financial Systems, Inc. (NCOF). The 18-state agreement makes $50,000 restitution available to Nebraska consumers affected by misleading and abusive debt collection practices by NCOF.
“Nebraska consumers should not be misled or bullied by debt collectors,” said Bruning. “This settlement helps to ensure NCOF changes its business tactics and follows the law.”
As part of the settlement, NCOF agreed to comply with all applicable federal and state laws. In addition, the company agreed to notify consumers about their rights under the laws, notify credit reporting agencies of consumer disputes, provide compliance reports to the states and institute written policies and procedures.
In total, NCOF has agreed to reserve $950,000 for consumer claims. Each of the 18 states involved in the settlement is reserved $50,000 for affected consumers with valid claims.
Valid claims must meet one of the following criteria:
1. The consumer paid NCOF a third-party debt the consumer did not owe.
2. The consumer overpaid interest on a third party debt that was not supported by the underlying agreement between the debtor and original debt holder.
3. The consumer paid more on a debt than the amount NCOF had agreed to collect to settle the account.
Nebraska consumers who believe they have a valid claim should contact the Attorney General’s Office at (800) 727-6432. Valid claims will be submitted to NCOF who will then provide payments to eligible consumers.
The company will also pay $575,000 to the states for consumer protection enforcement. Nebraska will receive $26,562.50 to the settlement cash fund.
Nebraska was joined in the settlement by Alaska, Arkansas, Idaho, Illinois, Iowa, Kentucky, Louisiana, Michigan, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, Vermont, and Wisconsin.
