Collection agency Unicredit America Inc., based in Erie, Pa., agreed Tuesday to cease collection tactics that Pennsylvania regulators say included a sham courtroom where customers were summoned, see story.
Unicredit agreed to stop sending letters to consumers threatening them with arrest if they failed to respond. Erie County (Pa.) Judge Michael Dunlavey also ordered the mock courtroom torn down within 30 days.
The state has also filed a civil suit against Unicredit alleging unfair trade practices. That suit seeks civil penalties for hundreds of affected consumers.