Arrow Financial Services was fined by State of MN
Date: Wed, 12/07/2005 - 20:14
LATEST NEWS
November 28, 2005
State Commerce Dept. fines collection agency
John Vomhof Jr.
Staff Writer
An Illinois collection agency owned by Sallie Mae has paid a $125,000 civil penalty after an investigation by the Minnesota Department of Commerce discovered 15 violations of Minnesota law.
The fine is the largest civil penalty ever imposed against a collection agency licensed in Minnesota.
The Department of Commerce's investigation alleged that Niles, Ill.-based Arrow Financial Services:
Withdrew money electronically from a debtor's checking account without authorization and after two separate requests to stop.
Contacted debtors at work after requests to stop.
Disclosed debt information to a debtor's co-worker.
Allowed a collector to contact a debtor prior to receiving a debt collector license, and submitted an application for a debt collector's license despite a recent felony conviction.
Failed to respond to the Department of Commerce's request for information, failed to provide responses from individual debt collectors and failed to provide copies of debtor work logs.
"This company says it provides courteous and professional service, but they missed the mark," Commerce Commissioner Glenn Wilson said. "The violations are serious and we cannot and will not tolerate this type of activity in Minnesota."
Also as part of the penalty, arrow financial services must design and implement a compliance program within 60 days to address the areas where violations occurred.
The company is part of Sallie Mae (NYSE: SLM), a Reston, Va.-based company that primarily provides federal and private student loans. In addition to student loan debt, Arrow Financial Services also collects credit card, utility, telecommunication, retail and automotive debts.
Source: http://twincities.bizjournals.com/twincities/stories/2005/11/28/daily7.html
This is good news and we should be happy to hear that a company
This is good news and we should be happy to hear that a company not following the federal laws has been ultimately penalized.
Folks, we all can see more of such actions when we join together and file the necessary complaints against other illegal collectors. We need to place our complaints first so that the authorities can take actions.
I am hoping the same with some other companies doing illegal business as well.
Wonder if this might have any bearing on a letter recently recie
Wonder if this might have any bearing on a letter recently recieved by this company. Getting a validation letter prepared to send back prety quick as it is.
Same company also caused me problems in the past.
options in dealing with a collection agency
I got a call from the Arrow Financial agency statting that my debt had been sold to them for collection. When I spoke with the person and asked what the debt was for because I had already paid the company my debt in full, he responded that since they had recived the payment a few days late they were charging me on the accumalated intrest. My question is do I have to pay the whole amount they are asking for or are there other options that I can take?
Esmeralda
Great news! Hopefully a few other collection agencies will get
Great news! Hopefully a few other collection agencies will get the clue and start treating people like human beings...not to mention following the laws!
Esmeralda, were you really late in paying the company? You must
Esmeralda, were you really late in paying the company? You must ask Arrow Financial agency to validate the debt first in writing before you make any payment agreement. The federal laws require the collection agencies to send you the debt details so that you can review it. They should send it within 5 days of placing the initial communication. If you haven't received anything in writing, send a debt validation letter and get the details.
Quote:I got a call from the Arrow Financial agency statting that
Quote:
I got a call from the Arrow Financial agency statting that my debt had been sold to them for collection. When I spoke with the person and asked what the debt was for because I had already paid the company my debt in full, he responded that since they had recived the payment a few days late they were charging me on the accumalated intrest. My question is do I have to pay the whole amount they are asking for or are there other options that I can take? |
Check your state laws for a definate answer. Many states, Illinois included, does not allow a collection agency to add on accumulated interest , fees or other charges.
Arrow is a Illinois based Company.
Arrow call
Just to add to the lovely company rep, here's a nice experience. I've had a lot of calls from collectors due to my wife's old habits. She's been trying to work things off but still has some debt. Some guy called and asked to speak to Jennifer...my wife. We usually screen calls for solicitors so I just asked who it was and he finally, after being a flaming ass, told me he was with arrow financial. He was such a jerkwad telling me I had to give the phone to her, I told him if he wanted, I could just hang up...he told me to go ahead. I should have. I ended up telling my wife there was some "f***ing di**head" that said he was from arrow financial. Of course, she asked what it pertained to. I told him she asked that and said that I could even take phone number if he didn't want to talk to me and she'd call back. He just griped "we're not doing this" and hung up. I've talked to a lot of collectors. Some are not so nice. I've NEVER had anyone this rude who told me to hang up and then would not give me a number to call. It's obvious their not a reputable company who has a clue about how to collect honestly. After reading postings here and other places, I told my wife money orders only...no info on your accounts goes to them at all. Yet, if they were not so degrading and jackass about it, I'd be happy to do the electronic withdrawl. Thanks for posting the rest of the comments here to give me a heads up also.
Debt Collectors
I had a boyfriend who worked for a debt collection company-he said it is illegal for them to cuss at you or to hang up on you-the company can be majorly fined.