Colorado Attorney General John Suthers' office announced Wednesday it has filed a lawsuit against Denver-based Regent Asset Management Solutions Inc. and CEO Michael Scata for allegedly violating state consumer protection statutes.

The lawsuit states that even though Regent Asset's license expired in July, the company kept collecting debts from consumers, a violation of the Colorado Fair Debt Collection Practices Act.

Regent Asset Management Solutions also allegedly failed to provide consumers evidence of the debts it was attempting to collect, leaving consumers with little or no information about how to determine the accuracy of their debts. "The legislature enacted Colorado's debt collection laws and licensing requirements so consumers can be sure the companies that contact them are playing by the rules," according to Suthers.

The lawsuit also alleges that the company took shortcuts in its business practices, including not sending required notices concerning the amount due, the creditor's name, the consumer's right to dispute the debt, and the right to obtain the name of and address of the original creditor.

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry