The attorney general of West Virginia has reached a settlement with First Sentinel Bank after it was accused of violating the West Virginia Consumer & Credit Protection Act and other state and federal laws related to debt collection tactics.
The bank was accused of engaging in “field visits” or “in-person” debt collection activities by going to the homes and places of work of individuals and attempting to collect from them personally. Visiting individuals at their places of work could be a violation of the state’s third-party disclosure rule, which is also included in the Fair Debt Collection Practices Act. In-person collections were also the subject of a compliance bulletin from the Consumer Financial Protection Bureau, which indicated that such activities could constitute a violation of Unfair, Deceptive, or Abusive Acts or Practices (UDAAP).
The bank was also accused of repossessing 324 vehicles using outside vendors that were not properly licensed to be operating in West Virginia.
As part of the settlement, the banks has agreed to “permanently refrain” from making in-person visits to individuals, either at their homes or places of employment. The bank also agreed to pay $30,000 in fines and restitution and zero out the balances for any individual whose vehicle was unlawfully repossessed. That amounts to $1.49 million in delinquent account balances that will be wiped away.
