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Indiana Debt Collection Agency Sued for Allegedly Operating Without a License, Engaging in Abusive Practices

  • Indiana AG Curtis Hill sued debt collection agency New Britain Financial, LLC (“NBF”) and its owner Nelson Macwan over allegations that NBF acted as a collector without a license and engaged in deceptive and abusive debt collection practices in violation of Indiana’s Deceptive Consumer Sales Act, Fair Debt Collection Practices Act, and Senior Consumer Protection Act.
  • The complaint alleges that the Indiana Secretary of State (the “SOS”) did not renew NBF’s debt collection agency license but NBF nonetheless continued its debt-collection activities, and allegedly engaged in unfair and deceptive practices such as threatening consumers with lawsuits, arrests, garnishments, and liens without having judgments against them. NBF’s license was not renewed because the SOS learned that Macwan was subject to an Illinois injunction that prohibits him from operating as a debt collector in that state.
  • The complaint seeks injunctive relief, the appointment of a receiver over NBF, restitution, civil penalties, and attorneys’ costs.
  • The complaint is part of a nationwide crackdown titled “Operation Corrupt Collector” spearheaded by the Federal Trade Commission. As previously reported, Operation Corrupt Collector includes over 50 enforcement actions by federal and state law enforcement agencies.