NCO Financial Debt Collection Settlement Still Open to Consumers

NCO Financial Debt Collection Settlement Still Open to Consumers

By Sarah Pierce

NCO Financial Systems has been in lot of hot water lately over its debt collection practices, including recent allegations it secretly records phone calls with consumers in violation of the law. The latest claims come nearly a year to the day that Ohio Attorney General Mike DeWine announced that he and 18 other state AGs had reached a $1.5 million class action settlement with NCO over unfair and deceptive debt collection practices.

NCO did not admit wrongdoing in agreeing to the $1.5 million class action settlement, which required the company to pay a total of $950,000 – or $50,000 per state – to compensate consumers who proved they wrongly paid NCO. The settlement also required NCO to pay the states $575,000 in reimbursement for the cost of the four-year investigation.

Consumer restitution is still available under the NCO Financial Systems settlement and will be for three years following the effective date. Consumers can receive a refund of money they wrongly paid NCO if they meet the following criteria:

• Consumer paid NCO a third-party debt that the consumer did not owe;
• Consumer overpaid interest on a third-party debt that was not supported by the underlying agreement between the debtor and the original holder of the debt or as otherwise permitted by law; or
• Consumer paid more on a third-party debt than the amount NCO agreed to settle the account.  

Consumers must reside in the following states to receive a refund: Alaska, Arkansas, Idaho, Illinois, Iowa, Kentucky, Louisiana, Michigan, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Oregon, Rhode Island, South Carolina, Vermont, and Wisconsin.

Consumers who believe that have a valid claim for restitution should contact their state Attorney General’s Office before February 2015. Consumers may also participate in a new class action lawsuit investigation if NCO contacted them on their cell phone without their consent.

If you were contacted by a debt collection agency on your cell phone without your permission you might have a legal claim under the Telephone Consumer Protection Act. Go to the TCPA Class Action Lawsuit Investigation to learn how to participate in this free investigation and receive up to $1,500 each time you were unlawfully contacted.

Updated February 13th, 2013

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