Debt Collector Agrees Not to Use District Attorney Letterhead in Bad-Check Diversion Cases

The Consumer Financial Protection Bureau (CFPB) recently sued and reached a settlement with a national debt collection agency that was hired by district attorneys’ offices around the country to administer bad check diversion programs.

The Consumer Financial Protection Bureau (CFPB) recently sued and reached a settlement with a national debt collection agency that was hired by district attorneys’ offices around the country to administer bad check diversion programs. As part of the settlement, the agency, National Corrective Group, agreed to stop doing the following (among many other things):

  • using letterhead from the various the district attorneys’ offices
  • using fake district attorney signatures on their letters
  • posing as district attorneys' offices, and
  • threatening jail or prosecution if the letter recipient did not pay fees.

To learn more about the settlement, including what a bad check diversion program is, see Nolo’s blog post Fed Agency Slaps Debt Collector Hired by Prosecutors.