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Hamburg debt collector settles with AG for $125K

Thu, Jul 29th 2010 12:00 am
A Hamburg-based debt collection company that repeatedly harassed and intimidated consumers will pay $125,000 to settle a case brought by the state Attorney General.

The investigation involved Lewis Hastie Receivables Inc., located on Main Street in Hamburg.

Amid the complaints received by the AG's office relating to the company was the case of a Lackawanna man who was wrongly targeted for a debt he did not owe.

Also, LHR collectors called a Georgia resident 10 times per day in an attempt to collect a debt that was allegedly inflated to more than triple the original amount owed.

"This company's business model was to harass consumers by calling them multiple times a day, continuously calling them at work after being told not to, and repeatedly calling even after the alleged debt was disputed," said a statement from Attorney General Andrew Cuomo. "It is unacceptable for debt collection companies to use illegal tactics for their own profit and we will continue to put a stop to the practice."

The company, in a statement attributed to its president, Wayne Lewis, referred to itself as a "good corporate citizen" and said it "provides good-paying jobs to hundreds of individuals." It added that LHR has been cooperating with the AG's office and does not admit to any wrongdoing.

"LHR takes compliance measures very seriously and invests significant corporate resources to provide employees with training to ensure they are complying with all state and federal laws that regulate the collections industry," the statement said.

The settlement is part of an ongoing investigation by the Attorney General's office that began in May 2009.