A California debt collector has settled a lawsuit brought by a Pittsburgh, PA attorney for violation of debt collection laws. The settlement: $2.5 million.
According to the Associated Press: “The company sent out letters as recently as last winter purporting to be from various Pennsylvania district attorneys’ offices to people who bounced checks.
The letters indicated that a crime had been committed, but that the check bouncers could clear up the matter by paying off the checks and various fees and by attending a financial accountability class.”
Public Citizen has also brought suit against this company. Deepak Gupta of Public Citizen says that lawsuits have been brought in many states. Again from the Associated Press: “They are renting out the name and authority of the prosecutor,” he said. “It’s a misuse of public authority and also, it’s a scam.”
“Consumers think they’re talking to their local prosecutor’s office, but they’re actually talking with the debt collector in California,” he said.”
If you receive a letter from National Corrective Group or any other company about a bouned check, please contact your local district attorney before you do anything else.