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Does this sound familiar? Are these tactics used by other debt collectors? Read this article:
The Minneapolis/St. Paul Business Journal – 4:45 PM CST Monday
State Commerce Dept. fines collection agency
By John Vomhof Jr., Staff Writer
An Illinois collection agency owned by Sallie Mae has paid a $125,000 civil penalty after an investigation by the Minnesota Department of Commerce discovered 15 violations of Minnesota law.
The fine is the largest civil penalty ever imposed against a collection agency licensed in Minnesota.
The Department of Commerce’s investigation alleged that Niles, Ill.-based Arrow Financial Services:
Withdrew money electronically from a debtor’s checking account without authorization and after two separate requests to stop.
Contacted debtors at work after requests to stop.
Disclosed debt information to a debtor’s co-worker.
Allowed a collector to contact a debtor prior to receiving a debt collector license, and submitted an application for a debt collector’s license despite a recent felony conviction.
Failed to respond to the Department of Commerce’s request for information, failed to provide responses from individual debt collectors and failed to provide copies of debtor work logs.
“This company says it provides courteous and professional service, but they missed the mark,” Commerce Commissioner Glenn Wilson said. “The violations are serious and we cannot and will not tolerate this type of activity in Minnesota.”
Also as part of the penalty, Arrow Financial Services must design and implement a compliance program within 60 days to address the areas where violations occurred.
The company is part of Sallie Mae (NYSE: SLM), a Reston, Va.-based company that primarily provides federal and private student loans. In addition to student loan debt, Arrow Financial Services also collects credit card, utility, telecommunication, retail and automotive debts.
jvomhof@bizjournals.com | (612) 288-2101
This article, Arrow Financial Services Collection Agency Fined, is just one of our articles from our Bank Horror Stories, HSBC Secrets Part 3
Bank Horror Stories monitors banking problems and customer complaints and has done so since 1999. Writers hold no stock positions. Some material is used under the fair use copyright act.
We use Thomson Reuters News Service Calais in all production material but are not associated with Thomson Reuters, banks, or financial institutions in any way.
One Comment
Please don’t contact me. THE HSBC AND ARROW ARE INCREDIBLY DIFFICULT AND CAUSED ME TO CONTACT MIKE COX, OF MI, TO INFORM HIM OF THE PROBLEM GETTING MY PAYMENTS ACKNOWLEDGED. NOW I AM SO FAR IN DEBT I HAVE NO WAY OUT. BAD CREDIT IN A POOR STATE ENSURE UMEMPLOYMENT. THANK YOU FOR NOTICING. HOPE THEY DON’T TRY CALLING AGAIN BEFORE I CAN PAY OFF MY DEBT STORE WITHOUT INTERRUPTIONS FROM COLLECTORS WITH ILLOGICAL REQUESTS. HAVE A NICE DAY ARROW.