BUFFALO, N.Y. — Buffalo-based debt collection businessmen and their companies have been banned from debt collection.
NYS Attorney General Letitia James announced the settlement Thursday in Buffalo.
According to the AG's office, Douglas MacKinnon, his companies Northern Resolution Group, LLC and Enhanced Acquisitions, LLC, as well as Mark Gray and his company Delray Capital, LLC, accepted a settlement banning them and their companies from debt collection and to pay more than $66 million.
Investigators say MacKinnon, Gray and their companies tried to collect more than consumers were legally obligated to pay and used illegal tactics to get payment.
They say the collections often demanded consumers pay an inflated price, causing them to pay thousands of dollars they did not legally owe.
The collectors falsely told consumers they would be arrested for check fraud and prosecuted. They also used spoofing to make it look like they were calling from a government agency.
“There is zero tolerance for individuals who use illegal and unconscionable tactics to cheat consumers out of their hard-earned money,” said Attorney General Letitia James in a statement. “Not only did the defendants force consumers to pay more than they owed, but they falsely threatened to have consumers arrested for not complying with these predatory practices. This settlement demonstrates our commitment to protecting consumers and I thank the CFPB for their partnership to stop this exploitative scheme.”
MacKinnon and Gray owned debt collection businesses throughout the country, but most offices were located in the Buffalo Niagara Region.
People who feel like they have been taken advantage of can file a complaint on the AG’s website or call (716) 853-0404 and could possibly get their money back.