Sunshine Financial Group Fined $20,000 For Improper Collectons
Sunshine Financial Group, a Maryland based collection firm, was fined $20,000 for collection debts without the proper license. The company was also ordered to repay $665,000 in attorney fees and compound interest to those who were taken to court for collection proceedings.
The firm tried to file for a collections license in July, but was rejected because some of the amounts owed were in question. “It’s a misrepresentation of the amount owed,” said Anne Balcer Norton, the state’s deputy commissioner of financial regulation.
This decision is great news for those who are going through collections proceedings because the cases will all be dropped. Anyone who has spent any money on attorneys or has paid their judgment amount will be repaid with interest.
As alarming as the case may be, it is not simply an aberration. Collection agencies have been trying for years now to collect debts without first verifying whether or not the debts are actually valid. Consider the methods that Bank of America has been using with computer generated calls and other shady tactics. Most people have judgments entered against them simply because they don’t show up to court because they think it is a lost cause.
Fortunately, Maryland is not stopping with Sunshine Financial and is aggressively pursuing other cases against collection agencies that do no follow proper methods of collection. Yes, these debt collectors have a right to pursue money owed to them, but consumers have rights and deserve to know that the balances against them are correct and valid.
