NCO Financial Archives

Whataburger Sues NCO for Debt Collection Calls

Wednesday, September 19th, 2012 at 5:00 am  
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The Houston Chronicle reports that Whataburger is suing NCO Financial Systems after NCO debt collectors repeatedly called company headquarters in an attempt to collect an alleged debt from an employee. According to the lawsuit, NCO Financial Systems has placed more than 50 calls to Whataburger’s toll-free line, and kept calling even after the company sent a cease-and-desist letter to the debt collection agency. Whataburger is alleging that NCO Financial violated the Fair Debt Collection Practices Act, and is suing to recover actual damages (the cost to the company of the toll-free phone calls), plus $1,000 for each violation of the FDCPA. Because the FDCPA protects consumers, it’s unclear whether Whataburger will prevail. However, it’s a nice change of pace for an employer to stand up for its employee. Often, the purpose of debt collection calls to the workplace is to instill fear into consumers in order to get them to pay so that the calls stop.

NCO Group Merges with APAC Under New Holding Company

Wednesday, April 4th, 2012 at 7:17 pm  
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In a press release issued yesterday, NCO Group announced that it had completed its merger with APAC Customer Services, Inc., and that Expert Global Solutions will act as the holding company for both NCO and APAC. NCO’s press release noted that, when combined, the companies have $2 billion in annual revenues, more than 40,000 employees, and more than 120 call centers, and that they operate in 14 countries.

In an interview with InsideARM, a debt collection industry publication, Expert Global Solutions CEO Ron Rittenmeyer says that he and his leadership team are pushing for “zero tolerance about compliance,” from which one can infer that they will insist upon debt collector compliance with the Fair Debt Collection Practices Act. He outlines the procedures in place to monitor and re-train collectors that cross the line, and says, “And when word spreads that we will not tolerate that kind of behavior, it immediately begins to change how people across the organization do their jobs.”

Rittenmeyer has been President and CEO of NCO Group since March 2011. Prior to that, he was President and CEO of Safety-Kleen Corporation, RailTex, and Ameriserve Food Services. In striving for compliance, it appears as though Rittenmeyer will have to pivot away from the company’s less than stellar history. According to a 2004 Federal Trade Commission press release, NCO Group paid a $1.5 million settlement in a case alleging that it had reported inaccurate information about consumer accounts to credit bureaus. The FTC touted that this was the largest Fair Credit Reporting Act penalty to date. More recently, the Minnesota Department of Commerce ordered NCO Financial Systems to change its employee screening procedures after alleging that the company hired convicted felons. In February, NCO Financial Systems settled with 19 state Attorneys General, agreeing to pay a total of $575,000 and set up a $50,000 consumer restitution fund in each state.

Minnesota Department of Commerce Targets NCO Financial’s Hiring Practices

Wednesday, February 29th, 2012 at 5:00 am  
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The Minnesota Department of Commerce has ordered NCO Financial Systems to change its employee screening procedures at its 49 debt collection agencies and pay the State $250,000 in penalties. NCO Financial agreed to a consent order that included allegations that the company hired debt collectors who were convicted felons and that it didn’t notify the Commerce Department when a registered debt collector was fired for violating the Fair Debt Collection Practices Act or Minnesota law.

According to a press release issued by the Department of Commerce, NCO Financial Systems was ordered to establish an employee screening process to weed out those who are not allowed to become debt collectors under state law, ensure that those currently working at NCO’s Minnesota office pass that screening process, and audit employment records of those who were fired to determine if they were terminated because of FDCPA or state law violations.

NCO Debt Collection Agency Settles with 19 State Attorneys General

Thursday, February 9th, 2012 at 6:19 pm  
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According to a press release issued by NCO Financial Systems, the debt collection agency has arrived at a settlement with 19 state Attorneys General, agreeing to pay a total of $575,000, as well as to set up a $50,000 consumer restitution fund in each state. The states affected are Alaska, Arkansas, Idaho, Illinois, Iowa, Kentucky, Louisiana, Michigan, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, Vermont, and Wisconsin.

According to Idaho Attorney General Lawrence Wasden, consumers who are eligible to receive restitution either:

* Paid NCO for a debt they did not owe;
* Overpaid interest on a debt that was not supported by the underlying agreement between the consumer and the original debt holder or that was otherwise permitted by law; or
* Paid more on a debt than the amount NCO agreed to settle the account.

The restitution funds are available through February 6, 2015. If you think you are impacted by the settlement, you should visit your state Attorney General’s website.

According to Vermont Attorney General William Sorrel’s press release, NCO’s settlement included provisions that the company must:

* comply with applicable state and federal law;
* for debts reported to credit reporting agencies, notify the agencies within 30 calendar days of any consumer dispute;
* provide notice to consumers about their debt collection rights under federal and state law; monitor compliance, including through training employees and independent contractors and creating policies and procedures for handling customer complaints; and
* submit compliance reports to involved states every 6 months for 18 months.

Several news reports have noted that NCO must, within 30 days, notify credit reporting agencies of verbal disputes (as opposed to only written disputes) from consumers.

NCO Group Buys Protocol Global Solutions

Wednesday, June 1st, 2011 at 5:00 am  
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According to a recent press release by NCO Group, the already gigantic debt collection agency has purchased Protocol Global Solutions, a debt collector specializing in healthcare, government, energy, insurance, and pharmaceutical markets. Protocol’s 2,200 employees and seven offices will presumably fold into NCO’s 100 offices and 30,000 employees. It’s branded subsidiaries include North Shore Agency, Transworld Systems, and University Accounting Service.

NCO’s purchase made the news, but there are a flurry of mergers and acquisitions within the debt collection industry that are flying under the radar. This can spell trouble for consumers, especially when ownership of debt buying and collection companies changes hands. Debt buyers often have little documentation or substantiation for debts, and when one debt buying company is sold to another, the ownership of the debt changes and the documentation can become even more muddled.

Major Debt Collection Agencies Targeted by Minnesota

Friday, January 28th, 2011 at 6:48 pm  
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We regularly discuss the problem of debt collectors crossing the line into abhorrent behavior. What isn’t as well-known is that some debt collectors have criminal histories. The Minneapolis Star-Tribune has done an outstanding job of investigating the underbelly of the debt collection industry, and recently reported that the state’s Commerce Commission, Mike Rothman, has put debt collection agencies on notice. State law says that debt collection agencies must conduct criminal background checks on their collectors, but Rothman is alleging that some of the major players have failed to do so.

Rothman notified Allied Interstate, AllianceOne, Bureau of Collection Recovery, I.C. System, Financial Recovery Services, NCO Financial Systems, Receivable Management Solutions, and Van Ru Credit Corp. that he’s prepared to go after their business licenses, and that his office must review their screening procedures. The Star Tribune found that one in 12 debt collectors had criminal records in Minnesota.

NCO Doubles Down on Healthcare Collections

Thursday, September 23rd, 2010 at 5:00 am  
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Credit Check 1In a recent press release, debt collection agency NCO announced that it was rolling out an “end-to-end Healthcare Revenue Cycle Management Solution,” and had purchased Health BluePrints, the principals of which will take the lead in NCO’s healthcare-related consulting. The company said that its offerings will incorporate five areas, one of which is health information management. Seemingly, the company will be involved in documenting patient information relating to doctor visits, as well as collecting outstanding medical bills. Let’s keep our fingers crossed that confidential patient information doesn’t get into the hands of debt collectors.

The StopCollector Case Files: Rogers vs. Capital One

Monday, July 12th, 2010 at 5:00 am  
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Over the past few days, we’ve discussed a class action lawsuit being brought by Lemberg & Associates against Capital One Services, NCO Financial Systems, and Capital One Bank. The law firm is also bringing a class action lawsuit against Capital One Services, United Recovery Systems, and Capital One Bank for sending similar letters that are in violation of the federal Fair Debt Collection Practices Act (FDCPA). Like Mr. Wood, Henry Rogers received a letter that he thought was from his creditor, Capital One Bank. Yet calls to the toll-free number were redirected to United Recovery Systems, which is a misleading debt collection practice. In addition, the letter fails to mention that Mr. Rogers has the right to dispute or obtain verification of the debt, which is also a violation of the FDCPA. Similarly, the letter doesn’t clearly state that it’s from a debt collector. Instead, that information is buried on the back of the letter.

The letter was a mass-mailed form letter that offered an annual percentage rate (APR) of 0% if Mr. Rogers agreed to a payment plan, but threatened that his APR would “return to 19.90%” on the entire debt if that agreement was not honored.

If you live in Connecticut and received a letter similar to the one Mr. Rogers received, and would like to join the group of consumers intent on holding Capital One Services, United Recovery Systems, and Capital One Bank accountable for their actions, complete the form here or call .

The StopCollector Files: Class Action in Woods v. Capital One

Sunday, July 11th, 2010 at 5:00 am  
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Yesterday we gave you an overview of the ways in which Gareth Wood was victimized by Capital One Services and NCO Financial Systems on behalf of Capital One Bank. Essentially, when they sent Mr. Wood a “Pre-Legal Notice,” these debt collectors violated the Fair Debt Collection Practices Act (FDCPA) in a number of ways.

Lemberg & Associates is in the process putting together a class action lawsuit for these violations. Why a class action suit? Because it appears as though the letter Mr. Wood received was a form letter. This form letter is likely to have been mass-mailed to thousands of consumers whose accounts are past due. When a situation like this arises, it’s impractical to expect every single consumer to hire a fair debt attorney and individually obtain justice. Class actions are made available to help consumers get relief when a company injures many people in the same manner.

If you live in New York and received a letter similar to the one Mr. Wood received, and would like to join the group of consumers intent on holding Capital One Services, NCO Financial Systems, and Capital One Bank accountable for their actions, complete the form here or call .

The StopCollector Case Files: Part II

Saturday, July 10th, 2010 at 5:00 am  
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Yesterday, we gave you an overview of Wood v. Capital One. Lemberg & Associates is charging that the letter Mr. Wood received is deceptive and misleading, and therefore violates the federal Fair Debt Collection Practices Act (FDCPA). The FDCPA says that a debt collector can’t falsely represent the character, amount, or legal status of any debt. In other words, declaring that the letter was a “Pre-Legal Notice,” without actually ever intending to take Mr. Wood to court, is a violation. The FDCPA also says that a debt collector can’t use false representation or deceptive means to collect a debt. By making it look as though the letter came from Mr. Wood’s original creditor, Capital One Collections and NCO Collections were acting deceptively.

In addition, the notice didn’t mention Mr. Wood’s right, under the FDCPA, to dispute the debt or to obtain verification of the debt. Plus, the letter didn’t effectively communicate that it was sent by a debt collector (that information was on the back of the letter in fine print) – another FDCPA violation.

Tomorrow, we’ll discuss why Lemberg & Associates is filing a class action lawsuit on behalf of consumers who experienced similar abuses.

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