Oregon AG Fines Debt Collection Agency $90,000

Oregon Attorney General John Kroger announced Friday an agreement that requires debt collector Allied Interstate, Inc. to pay $90,000 and put a stop to some of its practices.

Kroger said in a press release that roughly 200 consumer complaints have been filed with the Department of Justice against Allied Interstate in the past five years, accusing the company of systematically violating numerous prohibitions of Oregon debt collection laws and the federal Fair Debt Collection Practices Act (FDCPA).

Among other things, the complaints allege that Allied Interstate repeatedly called Oregon consumers even after being told they were not the intended debtor; repeatedly calling and hanging up when someone answered the phone; revealing alleged debts to third parties without permission to do so; threatening legal action the company was not authorized to take; and using obscene or profane language and harassing third parties with repeated phone calls.

Under the agreement filed April 7 in Marion County Circuit Court, Allied Interstate is permanently barred from:

• Making any misrepresentation in collecting or attempting to collect a debt;
• Making any representation that a consumer owes a debt or the amount of a debt, unless there is a reasonable basis for making such representation;
• Communicating with or continuing to call an Oregon resident once informed that they have called the wrong number, or once a resident has stated a desire not to be contacted;
• Using an automated dialer to call Oregon consumers unless the company has verified the phone numbers belong to actual debtors;
• Communicating with third parties about a consumer’s debt without the consumer’s consent or court permission;
• Using obscene or profane language or harassing consumers or third parties with repeated phone calls; and
• Making any other false or misleading statement in collecting a debt, including threatening action it does not intend to take.

Allied Interstate must also pay $90,000 dollars to the Oregon Department of Justice and an additional $50,000 if it fails to abide by any terms set forth in the agreement.

“The Department of Justice will not tolerate any attempt to threaten, harass or mislead Oregon consumers as a means of doing business.” said Attorney General Kroger. “When companies violate the law, we will hold them accountable.”

Allied Interstate did not immediately reply to a request for comment.