Apollo Credit Agency Inc., a collection agency based in Lakewood, Colo., and general manager James Saddoris are facing a lawsuit in Colorado for allegedly failing to pay clients on accounts placed for collection.
Colorado Attorney General John Suthers' office filed the lawsuit after receiving multiple complaints from Apollos clients stating that they were not paid on accounts placed with the agency for collection. Apollo and Saddoris are charged with violating the Colorado Fair Debt Collection Practices Act by failing to remit the payments.
Apollo also is charged with failing to maintain its trust account with enough funds to pay amounts due and owed to clients.
The court granted a motion by Suthers office for a preliminary injunction and ordered that Apollos assets be frozen. Apollos application to renew its collection agency license was denied in February.
The Denver District Court appointed a receiver to assume control of Apollo for 30 days and identify consumers and debtors who made payments to Apollo.
A receiver was appointed to ensure clients of Apollo are notified of the situation and that there is some accounting of what may ultimately be due to them, Suthers said. The receiver will assist in the process so correct credits on payments are accounted for and to prevent additional collection efforts due to Apollos lack of remittance of payments to creditors.