ST. PAUL, MN – Two debt collection agencies were sued by the state Wednesday after several Minnesotans complained they were intimidated and harassed over money they didn’t owe.
Lori Swanson, solicitor general in the attorney general’s office, said it appears some debt collectors no longer worry if they’ve got the right person. “Debt collectors are starting to harass people who do not owe money,” she said.
“I don’t think these companies cared,” she said.
Swanson’s office filed a lawsuit in Hennepin County alleging violations of debt collection and consumer protection laws against Minnesota-based Allied Interstate. A similar lawsuit was filed in Ramsey County against New Jersey-based JBC and Associates.
Phone calls weren’t immediately returned from either company.
One lawsuit alleges Allied made repeated collection calls to consumers who didn’t owe money and that the company hasn’t given proper notice to some consumers that they can dispute the debt in writing.
The other lawsuit accuses JBC of unlawfully threatening to sue on debts that have passed the six-year statute of limitations, threatening penalties higher than the law allows and attempting to collect on disputed debts without providing verification of those debts.
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