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Jennifer Beardsley, consumer law staff attorney for the Montana Legal Services Association, said some payday lenders have sent bill collectors to the doors of people who owe them money, demanding payment and threatening criminal prosecution.
A collection agency could be sued under state consumer protection law for sending aggressive notices on behalf of insurance companies in an attempt to recover subrogation interests from uninsured and underinsured drivers, the Washington Court of Appeals has ruled. The agency was hired by two insurance companies to pursue subrogation claims against drivers involved in accidents with their policyholders. The plaintiffs, an underinsured driver and an uninsured driver, sued under state consumer protection law, alleging that notices they received from the agency were deceptive in that they were made to look like actual debt collection notices and falsely represented that there was an "amount due" as if it were based on a debt they actually owed rather than a tort claim.
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