As part of the total restitution, Hutchinson, Kan.-based National Credit Adjusters (NCA) must pay a civil penalty of $200,000, discharge more than $2.26 million in consumers’ payday loan debts and provide refunds for collected interest totaling nearly $725,000 to more than 3,000 consumers.
Chesapeake, Va.-based Webcollex (d.b.a. CKS) must pay a civil penalty of $25,000, refund more than $66,000 in collected interest to 52 consumers and discharge $52,941 in outstanding debt to 106 consumers. The settlement was the DFS’s first to provide restitution to New York consumers for payday loan activity, according to the agency.
“Debt collectors, like [NCA] and CKS, who collect or attempt to collect outstanding payments from New Yorkers in violation of New York State and federal Fair Debt Collection Practices laws will be held accountable,” said Maria T. Vullo, acting superintendent of financial services. “DFS will take swift and appropriate action to protect New Yorkers and send a clear message that New York State will not tolerate those who attempt to profit from illegal payday loan activity.”
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