Editor's Note: Collections & Credit Risk first published this story on Saturday, July 3. Please check our home page often for breaking news, which can appear on the site long before our pre-scheduled CCR Newsline delivery dates.
Colorado Attorney General John Suthers’ office filed a lawsuit against a Denver-based collection agency barred just two months ago from collecting in the state.
Consumers notified the AG’s office that the David Faith Corp. has continued to contact them regarding collections. The company also allegedly withdrew money from a consumer’s bank account as recently as June 24, according to the complaint, filed in Denver District Court. Denver District Court Judge William Hood issued a temporary order barring the company from any further collection efforts in Colorado, Suthers said in a statement released Friday.
The agency is operated by Chad Lee - who was described in an administrative ruling by the attorney general's office as the president and sole stockholder in the firm. A previous ruling said Lee was convicted of class 4 felony theft in 1999. Under Colorado law, individuals convicted of theft and similar crimes are banned from acting as an officer, director, owner or collector of a collection agency.
In a May ruling (see story), the AG's office found that the agency engaged in harassment or abuse/threats of violence; made false representations as to the legal status of debts; made false and misleading representations that nonpayment of debts would result in arrest, and that Lee failed to disclose his felony conviction.
The investigation revealed that the company tried to collect debts before obtaining a license from the state. It also showed that one collector threatened to physically harm a consumer and also attempted to collect a judgment against the wrong individual - falsely claiming that "David Faith & Associates" is a law firm.