The Attorney General of Colorado yesterday announced a settlement with a collection operation that was accused of violating the Colorado Fair Debt Collection Practices Act (CFDCPA) by illegally collecting or attempting to collect on fines for parking that were already paid for or were incurred by another vehicle owner and for collecting in the state after its license expired. The company has agreed to pay $75,000 to the Attorney General’s office, issue $31,000 in refunds back to consumers, and make changes to how it collects on the fines.
A copy of the Assurance of Discontinuance with Parking Revenue Recovery Services can be accessed by clicking here.
The company’s license to collect expired on July 1, 2022 and the company did not submit a new application until December of that year. In the interim, the company continued to collect debts, according to the settlement.
The AG’s office said it received a “high volume” of complaints from consumers regarding attempts to collect debts from consumers who paid to park in a lot operated by the company but entered the wrong license plate number, who did not park in one of the company’s lots, but had their license plate number entered incorrectly, which generated a collection notice that was sent to the wrong individual, and who did not receive a 15-minute grace period.
In notices sent to consumers, the company would include fees up to $88.
The company denies the allegations, but agreed to the settlement to avoid the inconvenience and expense of a dispute with the AG’s office.
The $31,000 in refunds will go to settle the claims that the company violated the CFDCPA. The $75,000 fine will settle claims the company engaged in unfair and deceptive acts in violation of the Colorado Consumer Protection Act.
“Whether they were told to pay meritless fines for parking they already paid for, or they received a notice in the mail from somewhere they never even parked, hundreds of consumers fell victim to this company’s dishonest tactics.” said Phil Weiser, the Attorney General of Colorado, in a statement
