CHARLESTON, W.Va. — There will be approximately $20 million in debt cancellation for West Virginia consumers, according to an announcement made Monday by state Attorney General Patrick Morrisey.
The announcement is part of a settlement with debt collector Cavalry Investments and Cavalry Portfolio and others. The settlement came after Cavalry was accused of practicing debt collection without a West Virginia license and surety bond.
As stated in the settlement, Cavalry must end its efforts to collect $19.7 million in debt for about 2,800 consumers. In addition, they must pay $350,000 to the state.
“This settlement provides significant relief directly to the affected consumers,” Morrisey said in a news release. “Companies operating in our state must respect our laws.”
Also, Cavalry allegedly violated the state’s Consumer Credit and Protection Act with telephone abuse and harassment, failure to identify the account owner in collection letters and reporting alleged debts to consumer reporting agencies.
The company has denied any of the allegations. They did agree to delete all account information from the affected customers’ credit records.
A lawsuit against Cavalry was filed by Morrisey’s office.