LITTLE ROCK — A debt collection company has agreed to pay up to $50,000 in restitution to Arkansas consumers as part of a settlement involving 19 states, the state attorney general’s office announced Monday.
NCO Financial Systems Inc. also agreed to change its debt-collection practices as part of the settlement with Arkansas and 18 other states to settle claims, Attorney General Dustin McDaniel said.
The claims stem from an investigation by attorneys general into allegations of misleading and abusive debt collection practices by the company.
As part of the settlement, NCO Financial agreed to comply with all applicable federal and state laws and notify consumers about their rights under those laws, notify credit reporting agencies of consumer disputes, provide compliance reports to the states, institute written policies and procedures and provide training for employees and contractors.
Valid claims must meet one of the following criteria: A consumer paid NCO Financial a third-party debt the consumer did not owe; a consumer overpaid interest on a third-party debt that was not supported by the underlying agreement between the debtor and original debt holder; or a consumer paid more on a debt than the amount NCOF had agreed to collect to settle the account.
Independent reporting for Pine Bluff & Jefferson County since 1879.
Arkansas consumers who believe they have a valid claim should contact the attorney general’s office at (501) 682-2341 or (800) 482-8982. Valid claims will be submitted to NCOF and NCOF will provide payments to eligible consumers.
In addition to Arkansas, the states involved in the NCOF settlement are Alaska, Idaho, Illinois, Iowa, Kentucky, Louisiana, Michigan, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, Vermont, and Wisconsin.
As part of the settlement, NCOF agreed to pay the states a total of $575,000. Arkansas’s share of that payment will be $26,562.50.