State regulators in Minnesota have issued two separate enforcement actions against collection agencies — one for threatening lawsuits it did not intend to file, and another for collecting while unlicensed and misrepresenting its licensing status.
MCC Group
The Department of Commerce entered a consent order with MCC Group after determining the company sent “Notice of Intent” letters to consumers that suggested both the agency and its clients intended to file lawsuits. According to regulators, MCC Group had no actual intent to take such action.
The state found this to be a false and misleading representation during the collection of a debt, citing violations of the FDCPA and Minnesota state laws. The company agreed to:
- Pay a $10,000 civil penalty, with $5,000 stayed
- Develop and maintain written policies and procedures within 60 days
- Cease and desist from future violations
- Pay $393.75 in investigative costs
The order makes clear that the stayed penalty will be imposed if future violations occur before August 1, 2028.
CAC Financial
The Commerce Department also sanctioned CAC Financial after determining it continued collecting from Minnesota consumers after its collection agency license expired in 2018.
Regulators also concluded that the company misrepresented itself to consumers as being licensed in the state, which is another violation of state law and the FDCPA’s prohibition on deceptive representations.
Under the Consent Order, CAC must:
- Pay a $15,000 civil penalty, with $8,500 stayed
- Pay $123.75 in investigative costs
- Cease and desist from future violations
The stayed portion of the fine will be reinstated if the company engages in additional violations before October 31, 2028.
Read the action involving MCC Group. Read the action involving CAC Financial.
