Two Debt Collection Firms Agree to Stop Collecting in West Virginia

Two debt collection agencies in New York have decided to stop gathering debt payments without a license in West Virginia. This is a part of the agreement with the West Virginia Attorney General Darrell McGraw.

The debt collection agencies have said yes to the proposal to issue over $11,000 in refunds and cancelled to their customers in the state and pay $5,000 to the state itself.

The decision was made between the Northtown Capital Associates Inc and Interstate Check Systems Inc. Both debt collection firms are based in Amherst, New York.

The office of Attorney General of West Virginia Darrell McGraw started investigating the two debt collection agencies that were owned by Joseph Elias, following complaints that the companies were gathering debt payments in the state of West Virginia without a license to do so. Both debt collection firms were also collecting surety bonds as stated by the Tax Department of West Virginia.

In the investigations done by the McGraw office, it was found out that both debt collection agencies were able to collect debts that were suspected owed to an Internet payday lender named Payday Yes.

Internet payday loans are considered illegal in the state of West Virginia. This type of loan is tied to an exorbitant amount of interest usually from 600 to 800%.

According to Attorney General McGraw, “West Virginia's laws regarding the licensing of collection agencies are intended to protect both the industry and consumers. My office will continue its rigorous enforcement of these laws to ensure a level playing field for all legitimate agencies that collect debts in West Virginia. We will also take action to prohibit any collection agency, licensed or unlicensed, from collecting unlawful debts such as Internet payday loans.”