State AG Sues Collection Agency for Failure to Remit Debt Payments

Colorado Attorney General John Suthers announced this week that his office has filed a civil lawsuit against collection agency Apollo Credit Agency, Inc. and General Manager James P. Saddoris. The lawsuit was filed after Apollo’s clients contacted the Consumer Protection Section of the Office claiming they had not been paid on accounts placed with Apollo for collection.

The Attorney General’s Office alleges that Apollo, as a licensed collection agency, was violating the Colorado Fair Debt Collection Practices Act (CFDCPA) by failing to remit payments it owed clients. The complaint also claims that Apollo failed to maintain its trust account with sufficient funds to pay amounts due and owed to its clients.

“At this point, a receiver was appointed to ensure clients of Apollo are notified of the situation and that there is some accounting of what may ultimately be due to them,” said Suthers. “The receiver will assist in the process so correct credits on payments are accounted for and to prevent additional collection efforts due to Apollo’s lack of remittance of payments to creditors,” Suthers explained.

The Denver District Court appointed a receiver to take control of Apollo for a 30-day time period and to perform an initial accounting to identify clients of Apollo. The receiver will also identify consumer/debtors who have made payments to Apollo. In addition the court granted the Attorney General’s Office motion for a preliminary injunction and an order freezing assets.

In a related action, Apollo’s application to renew its license as a collection agency was denied last month.