New Mexico AG Sues Merchants Credit Guide

New Mexico Attorney General Gary K. King has sued Chicago-based Merchants’ Credit Guide Co. for allegedly violating the state’s unfair practices law.

According to the complaint filed this week, Merchants’ Credit attempted to collect debts in New Mexico that had passed the state’s six year statute of limitations on written contracts, or the state’s four year statute on oral contracts. In addition, Merchants’ Credit failed to notify debtors that portions of their debt may have passed the statute of limitations.

The complaint further said that Merchants’ Credit knowingly made false or misleading statements, visual descriptions or other representations to consumers in connection with the collection of the debts.

In a second count in the complaint, King said that the company attempted to collect debts in 2003 and 2004, before it was licensed to do business in the state in April of 2005.

Merchants Credit Guide did not return phone calls. The family-owned firm, founded in 1896, offers contingency collection, pre-collection, skip tracing, and litigation services.

The company’s Web site said the firm “is one of the fastest growing private companies in North America, with revenues increasing by over 570 percent over the last three years.”