A collection agency owned by a convicted felon, and recently accused of using strong-arm tactics, has been barred from collecting debts in Colorado, the state's Attorney General John Suthers announced today.
The agency, David Faith & Associates, is operated by Chad Lee - who was described in an administrative ruling by the attorney general's office as the president and sole stockholder in the firm.
The ruling said Lee was convicted of class 4 felony theft in 1999. Under Colorado law, individuals convicted of theft and similar crimes are banned from acting as an officer, director, owner or debt collector of a collection agency, according to the ruling.
Because the agency is owned by a felon and its president is a felon, the agency is not eligible to be licensed in Colorado, according to the attorney general's ruling.
In the lengthy ruling, the attorney general's office found that the agency engaged in harassment or abuse/threats of violence; made false representations as to the legal status of debts; made false and misleading representations that nonpayment of debts would result in arrest, and that Lee failed to disclose his felony conviction.
The investigation revealed that the company tried to collect debts before obtaining a license from the state. It also showed that one collector threatened to physically harm a consumer and also attempted to collect a judgment against the wrong individual - falsely claiming that David Faith & Associates is a law firm.