West Virginia AG Announces $75,000 Settlement with Collection Agency

West Virginia Attorney General Darrell McGraw said Wednesday that his office had reached a settlement with a debt collection agency that will see the ARM firm pay $75,000 to the state and amend its practices.

McGraw’s office said that Solon, Ohio-based National Enterprise Systems (NES) used illegal tactics to collect debts from consumers in West Virginia, including “repeated calls to consumers who stated they did not owe the debt and false threats of lawsuits, arrest and criminal prosecution.”

McGraw’s suit also alleged that NES, which attempted to collect debts owed to many West Virginia colleges and universities, added unlawful fees to the accounts. In its defense, NES contended that it had simply collected the amounts requested by each school and did not know if or when additional fees had been added.

In addition to paying $75,000 to the state NES also agreed to comply with state and federal consumer protection laws and to submit a comprehensive plan within 90 days outlining actions it will take to meet the terms of the order.

In a statement made to insideARM.com, NES said that it fully cooperated with the attorney general and will comply with the terms of the settlement agreement.

“We have been working diligently to come to a fair and swift resolution to the allegations in this complaint and intend to comply fully with its mandates,” the company said.

McGraw acknowledged that NES had cooperated and that the matter should be considered settled. “I am satisfied that NES is committed to resolving our concerns and I commend the company for agreeing to this settlement,” he said in his press release.

Ernest Pollack, CEO of NES, said, “Internally, our mission remains constant as we continue to emphasize, train and discuss the importance of best practices as they relate to fair and equitable collection techniques. All of our employees are well advised that we will not tolerate anything less than full adherence to all consumer protection laws including the Fair Debt Collection Practices Act (FDCPA).”

NES employs 420 people at its office in Solon, located in suburban Cleveland.

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