Two of the largest consumer debt buyers on Thursday agreed to halt lawsuits against borrowers and pay fines to settle allegations they violated New York law in pursuing debtors, according to New York Attorney General Eric Schneiderman's office.

Portfolio Recovery Associates, based in Norfolk, Va., and Sherman Financial Group, based in New York, will drop collections on an estimated $16 million in judgments. Portfolio Recovery agreed to pay $300,000 and Sherman Financial agreed to pay $175,000 in civil fines and other costs. Neither company admitted wrongdoing.

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