National Enterprise Systems (NES) Inc., a collection agency based in Solon, Ohio, agreed to pay an estimated $400,000 to settle charges brought in a lawsuit by Ohio Attorney General Richard Cordray's office.
The settlement includes $207,500 in consumer restitution and a comparable amount in payment to the state’s Consumer Protection Enforcement Fund.
Last July, Cordray sued NES for harassing consumers when attempting to collect on debts,
Some of the practices alleged included calling and harassing consumers’ coworkers and family members, calling before 8 a.m. and after 9 p.m., using abusive language, attempting to collect debts consumers did not owe, failing to verify debts and making unauthorized withdrawals from consumers’ bank accounts, according to Cordray's office, which logged more than 390 complaints against NES.
Consumers who filed complaints prior to the agreement may be eligible to receive $200 or more in restitution and will receive notification through the mail.
As a result of the agreed consent judgment filed in the U.S. District Court for the Northern District of Ohio in Cleveland, NES also agreed to make changes to its collection practices.
“Our lawsuit outlined a laundry list of clear violations," according to Cordray's office. “With today’s settlement, not only will consumers receive restitution but the company will implement new policies and procedures to prevent this from happening again. Ohioans deserve a fighting chance to pay back debt without being demeaned, deceived or harassed.”
Along with restitution, NES agreed to the following provisions to improve its business practices: train employees to comply with applicable state and federal law; send written communication within five days of first contact and include the amount of debt, the name of the creditor, a notice that the consumer has 30 days to dispute debt, how to dispute the debt and how to ask for validation of the debt; include in settlement agreements the total amount due, settlement amount, monthly payment amount and approval of creditor; and, add a disclosure on all written collection communication stating that Ohio law requires fair treatment of consumers and that consumers can write a letter to prevent a debt collector from contacting them. Additionally, the communication will provide the Ohio Attorney General office’s contact information for consumers to file concerns.
Cordray said today that his office will continue to monitor NES and all debt collection agencies with Ohio accounts.
