The Attorney General of Indiana yesterday announced he had filed a lawsuit against a collection agency, accusing it of engaging in deceptive and abusive collection practices and operating without a proper license.
The lawsuit, filed against New Britain Financial and its founder, Nelson Macwan, was announced as part of Operation Corrupt Collector, a joint state and federal initiative aimed at protecting consumers from abusive collection practices and collectors seeking to collect on non-existent debts.
New Britain had a license in Indiana from its founding in 2015 through 2018, but the license was not renewed in 2019, citing a lack of “good moral character.” The Indiana Secretary of State had learned that Macwan was previously enjoined from operating as a debt collector in Illinois and had served time in jail for violating that injunction.
Along with operating without a license, the agency was accused of engaging in deceptive and abusive tactics, including “threatening consumers with lawsuits, with arrest, with garnishments and liens without having judgments against them.”
“Debt collection is a serious business that can have life-changing impacts on consumers’ lives, and it should be carried out only by individuals who bring integrity to the job,” said Curtis Hill, the Attorney General of Indiana, in a statement. “The allegations against New Britain Financial and its owner are serious, and we aim to permanently prevent them from performing these duties in our state.”
The Attorney General is seeking a permanent injunction against Macwan and New Britain that would prohibit them from engaging in debt collection activities in Indiana. The suit also seeks restitution for individuals who have been harmed by the alleged deceptive tactics used by the agency.
