Settlements for alleged violations of state and federal laws include consumer redress and permanent ban for the defendants from acting as debt collectors.
7/29/2019 9:00
The Consumer Financial Protection Bureau and New York Attorney General’s recent proposed settlements with debt collectors allegedly committing fraudulent practices are necessary enforcement actions to continue to protect consumers and legitimate accounts receivable management industry professionals.
The individuals and companies named in the proposed settlements, Douglas MacKinnon, Northern Resolution Group LLC, Enhanced Acquisitions, LLC, Delray Capital, LLC and Mark Gray, are debt-collectors who conducted business together based in Buffalo, New York, according to the CFPB and New York Attorney General.
The complaint from the CFPB and attorney general alleged that since at least 2009, the companies together purchased millions of dollars’ worth of consumer debt, inflated those consumer debts, and relied on illegal tactics to extract as much money as possible from consumers for their debts. Under the proposed settlements, according to the CFPB, all defendants would be permanently barred from acting as debt collectors. All defendants also would be enjoined from engaging in any misrepresentation or omission in connection with any consumer financial product or service as well as required to pay redress to consumers and civil penalties.
ACA International, as the leading voice for the highly regulated accounts receivable management industry, is disappointed when fraudulent actors misrepresent themselves as professional accounts receivable management industry companies.
“ACA International applauds efforts by the Consumer Financial Protection Bureau and the New York Attorney General’s office to take enforcement action against bad actors who seek to victimize consumers,” said CEO Mark Neeb. “As the leading voice and educator of accounts receivable management industry professionals, ACA International takes extensive precautions to provide members with compliance resources and certifications and is disappointed when fraudulent actors misrepresent themselves as professional accounts receivable management industry companies.”
The defendants Douglas MacKinnon, Northern Resolution Group and Enhanced Acquisitions are represented by Lippes, Mathias, Wexler, Friedman LLC in Buffalo, New York.
“Our clients agreed to a stipulation for the entry of a $60 million judgment. The $60 million represents the full amount of damages which the government was seeking through the litigation,” said Dennis C. Vacco, partner with Lippes, Mathias, Wexler, Friedman LLC, on behalf of MacKinnon, Northern Resolution Group and Enhanced Acquisitions. “Once the court accepts the stipulation and enters the judgment, the government will need to commence separate proceedings to enforce the judgment. Mr. MacKinnon wanted to put this matter behind him and avoid the ongoing cost of litigation and to allow him to move onto other business interests. He was not required to pay money at this time pursuant to the terms of the stipulation.”
Defendants Mark Gray and Delray Capital LLC are represented by Joseph G. Makowski LLC in Buffalo, New York. A statement from the firm was pending at press time.
“ACA International works with and represents legitimate accounts receivable management professionals who respect and follow laws set forth by regulatory agencies and federal and state governments. Legal, legitimate debt collectors are a necessary part of a healthy economy as they ensure that rightfully-owed debt is returned to creditors,” Neeb said.
View the CFPB’s news release for more information and links to judgments and orders for the defendants.