Massachusetts AG Files Complaint Against Debt Collector

Reaches Agreement To Prohibit Unlawful Debt Collection

December 10, 2007 -- BOSTON – Massachusetts Attorney General Martha Coakley’s Office reached a preliminary agreement with The Cadle Company (TCC), The Cadle Company II, Inc. (TCC II), and Daniel C. Cadle (Cadle), all of Ohio, prohibiting them from engaging in unfair and unlawful debt collection as outlined in a complaint filed in Suffolk Superior Court on Friday, December 7, 2007. The defendants do not have the necessary licenses to collect debt in the Commonwealth.

In order to engage in the business of debt collection in Massachusetts, a debt collector must obtain proper licensure through the Commissioner of Banks. In December 2003, the Division of Banks denied TCC, and its affiliates, a request for a license to operate in Massachusetts. In June 2007, the Division of Banks denied TCC II’s August 2005 application for a license to operate as a debt collector in Massachusetts. The Division of Banks found that TCC had engaged in unlicensed debt collections between the December 2003 license denial of TCC and TCC II’s August 2005 application for licensure.

On Friday, the companies and the Commonwealth agreed on the terms of a stipulated order, which was entered by the Court on December 7th.

Under this agreement, TCC, TCC II, and Cadle agreed to:

* Refrain from operating a debt collection business by collecting, or attempting to collect, directly or indirectly, debts owed by residents of the Commonwealth, without a license of the Massachusetts Division of Banks;
* Should Cadle operate as a passive debt buyer, all collection activity is to be performed by a properly licensed debt collector or an attorney-at-law licensed to practice in the Commonwealth;
* Provide advanced notice to the Attorney General of the licensed collection agent that will perform such services on behalf of the defendant.

The agreement does not resolve the Attorney General’s lawsuit against the defendants. The Attorney General’s complaint alleges unfair and deceptive acts or practices under the Consumer Protection Act, which authorizes recovery of civil penalties, restitution to harmed consumers, and injunctive relief. The Attorney General’s complaint asserts that the companies violated Massachusetts law by knowingly collecting debt in the Commonwealth without a license, in violation of M.G.L ch. 93A.

Consumers concerned about deceptive debt collection practices in the Commonwealth are urged to call the Attorney General’s Consumer Hotline at (617) 727-8400.

This matter is being handled by Assistant Attorney General Jonathan Engel of Attorney General Coakley’s Consumer Protection Division.

Source: Massachusetts Attorney General

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