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MAINE BUREAU OF CONSUMER CREDIT PROTECTION

35 SHS, Augusta, Maine 04333


Phone:	207-624-8527
Fax:	207-582-7699
Consumers-only toll-free:	1-800-DEBT-LAW (1-800-332-8529)

NEW YORK DEBT COLLECTOR TO REFUND $100,000, CREDIT $75,000 TO MAINE CONSUMERS

July 7, 2006

Buffalo, New York collection agency, Account Management Services, and four of its principals have been ordered to refund $100,000 to Maine consumers and to forgive another $75,000 in debts, under the terms of a Consent Judgment approved by Superior Court in Augusta on June 29, 2006.

The State Attorney General's Office and the Office of Consumer Credit Regulation brought the action in December 2004, claiming multiple violations of Maine's Fair Debt Collection Practices Act and the Unfair Trade Practices Act. The State's complaint alleged that collectors' calls to Maine consumers included illegal threats to have debtors arrested, illegal threats to seize debtors' property, illegal disclosures of confidential financial information and the use of insulting language. Additionally, the State claimed that the agency's collectors continued to call consumers after the Office of Consumer Credit Regulation ordered in April 2004 that it stop activity in Maine. As part of the Consent Judgment, Account Management Services and the other defendants neither admitted nor denied the allegations against them.

The Consent Judgment places tight controls on any future activity by Account Management Services, if it wants to do any business in Maine. The collection agency, its affiliates and principals cannot do business in the State unless they meet eight conditions, including the use of attorneys licensed and located in Maine. Those attorneys must supervise any collection activity, and the names and locations of those attorneys must be provided in advance to the Office of Consumer Credit Regulation.

The Consent Judgment requires Account Management Services to provide the Attorney General's Office with the names of all Maine consumers contacted between 2002 and 2006. The defendants must pay $100,000 for distribution to eligible consumers and must forgive up to $75,000 in debt of eligible consumers. After analyzing the company's records, the Attorney General's Office will contact consumers who are eligible for a payment or debt forgiveness. The defendants also must pay $25,000 to the Attorney General's Office for its costs and expenses incurred in prosecuting the action.

"The case is a lesson for debt collectors doing business in Maine," said James Bowie, the Assistant Attorney General who represented the State. "Use of illegal tactics will have serious consequences."

Will Lund, Director of the Office of Consumer Credit Regulation, agreed. "This company hid behind the façade of out-of-state law firms," said Lund. "It's important for those who would use illegal collection practices to understand that government officials will persevere in their efforts to protect Maine consumers, even if companies attempt to ignore or evade our enforcement efforts."

Consumers with complaints about licensed or unlicensed debt collectors or repossession companies can contact the Office of Consumer Credit Regulation at 1-800-DEBT-LAW (1-800-332-8529), or using an online complaint form found at www.credit.maine.gov.

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The Maine Bureau of Consumer Credit Protection was established in 1975 to enforce a variety of credit-related consumer laws. The Office licenses lenders, creditors and collectors; conducts periodic examinations of creditors to determine compliance with state laws; and responds to consumer complaints and inquiries. The Office also conducts educational seminars and provides speakers to advise consumers and creditors of their legal rights and responsibilities.