ATLANTA – A Texas-based debt collections agency has agreed to a $19.8 million settlement with the state of Georgia to resolve allegations that the company violated state and federal fair business practices laws.
Turtle Creek Assets was accused of threatening consumers with arrest or imprisonment if they did not pay their debt. The company and its owner, Gordon Engle, also failed to disclose that they were debt collectors trying to collect a debt and failed to provide consumers a written notice within five days of contacting them.
All of those practices are illegal under the federal Fair Debt Collection Practices Act and the Georgia Fair Business Practices Act.
“Our office will continue to hold accountable debt collectors that try to intimidate consumers by using abusive, deceptive and illegal tactics,” Georgia Attorney General Chris Carr said Thursday.
Under the settlement, Turtle Creek must cease collections on all Georgia consumer accounts it owns and turn those accounts over to the attorney general’s office so they cannot be sold or collected on in the future.
In addition to the $19.8 million, which represents the total contract value of the consumer debt, the company must pay $41,500 in penalties and fees.
The settlement sets up a three-year monitoring period. Any additional violations during that time will subject Turtle Creek to an additional $41,500 payment.