AllianceOne Receivables Management, an Eagan, Minn.-based collection agency, agreed to pay a civil penalty of $21,412 in North Carolina to refund processing fees customers in the state submitted along with monthly payments.

AllianceOne agreed to the penalty rather than face an administrative hearing to determine the legality of charging the fees. The company did not acknowledge violating any laws but agreed to stop collecting the fees. The penalty will help reimburse anyone who paid the processing fee between June 1, 2010, and June 5, 2013.

North Carolina Insurance Commissioner Wayne Goodwin said AllianceOne had collected the money from consumers in the state, with individual fees ranging from five to ten dollars. State officials said the agency also failed to report any administrative actions taken against the company in other states.

Consumers with questions about the refund should contact AllianceOne at 651-255-2001 or the North Carolina Department of Insurance at 800-546-5664.

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