State AG Sues Debt Collector for Ignoring Collection Ban

Colorado Attorney General John Suthers announced last last week that his office has filed a lawsuit against a Denver-based debt collection agency that has failed to comply with an administrative order barring it from collecting debt.

Suthers also announced that Denver District Court Judge William Hood has issued a temporary order enjoining the company from any further collection efforts in the state.

According to the suit, filed in Denver District Court, consumers notified Suthers’ office that the David Faith Corporation has continued to contact them regarding debt collection activities. The company also allegedly withdrew money from a consumer’s bank account as recently as June 24, 2010.

“Colorado requires that debt collection agencies be licensed before they can collect on debts from Colorado consumers,” Suthers said. “Debt collectors that refuse to comply with Colorado’s laws have no business operating in the state.”

The Office of the Attorney General issued an order in late May denying the David Faith Corporation’s application for a debt collection license and barred the company from collecting debts ("Colorado AG Kicks Debt Collection Agency Out of State," May 24). According to the order, the Denver-based company engaged in fraudulent and threatening debt collection practices, which is barred under Colorado law, and attempted to collect debts prior to obtaining a license from the state. The company’s owner, Chad Lee, also lied on the company’s application to become a licensed debt collection agency concerning his criminal history, according to the complaint

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