Minnesota Attorney General Files Suit Against Debt Collection Agency

Minnesota Attorney General Lori Swanson announced Tuesday that her office had filed a lawsuit against a collection agency she says failed to “adequately verify the validity of debts” the company was collecting.

Swanson said in a press release that her office has filed a suit in Hennepin County (Minn.) District Court against Bloomington, Ill.-based accounts receivable management firm Afni, Inc.

The suit alleges that Afni did not properly validate the accounts they were working when asked to do so by Minnesota consumers. Further, Swanson’s office said that Afni continued collection efforts, including credit bureau reporting, after failing to validate the debt.

Various media reports state that the AG’s office received more than 50 complaints against Afni.

Afni has not seen the suit, and could not specifically comment on its merits. “They haven’t given us a copy of the suit yet,” Alan Angelo, spokesman for Afni, told insideARM. “We haven’t heard from [Attorney General Swanson].”

The suit does not specify damages that are being sought or business practices Afni must change. Swanson noted in her press release that her office has published a Debt Collection Fact Sheet to help consumers in “dealing with collection agencies.”