National Corrective Group, Inc. (NCG), American Justice Solutions, Inc. d/b/a Corrective Solutions, et al.
Enforcement, Debt Collection
In March 2015, the CFPB sued National Corrective Group for allegedly using “intimidation tactics to collect debts for bounced checks.” The National Corrective Group allegedly “threatened consumers with criminal prosecution and jail time” and “misled consumers by requiring them to enroll in a $200 financial education program to avoid criminal charges.” In April 2015, the CFPB issued a consent order to National Corrective Group to pay $50,000 and “stop using district attorneys’ letterheads or threatening criminal punishment in their notes seeking payment from debtors.” As of February 2017, the lawsuit is ongoing.
“The CFPB also claimed National Corrective Group sent notices on prosecutors’ letterheads before any district attorney review took place, and falsely claimed consumers could be prosecuted for writing bounced checks. The bureau also alleged the company violated The Fair Debt Collection Practices Act and the Dodd-Frank Act for using deceptive practices in the financial marketplace.” [“CFPB Sounds Alarm on Debt Collector,” Credit Union Times, 03/30/15]