108664515693942368

Debt Collector Fined $1.5 Million
David Goch
Washington Legislative Counsel
Commercial Law League of America

In order to resolve claims of illegal conduct, per a consent judgement filed in the U.S. District Court for the Eastern District of Pennsylvania May 12th, a major debt collector will refrain from future violations of the Fair Credit Reporting Act and will pay a $1.5 million civil penalty (U.S. v. NCO Group, Inc., E.D. Pa., No. 992-3012, 5/12/04).

The complaint, filed by the Justice Department, at the request of the Federal Trade Commission, alleged that NCO Group, Inc. and affiliates (NCO Financial Systems, Inc.; and NCO Portfolio Management, Inc.) reported incorrect information about consumer accounts to credit bureaus in violation of Section 623(a)(5) of the FCRA and Section 5 of FTC Act.

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