Attorneys barred from collecting debts in Colo.

Filed under: Daily News |

Three attorneys have been barred from doing business in Colorado based on alleged violations of the Colorado Fair Debt Collection Practices Act and the Consumer Protection Act.

Jack Boyajian, Marvin Brandon and Karen Nations were barred by a consent decree that was approved earlier this week by a Denver district court judge.

Brandon is permanently banned, while Boyajian is banned for five years and Nations for three years.

The settlement requires that both Boyajian and Nations obtain licenses from the state before they start debt collections in Colorado again. Boyajian and the corporate defendants must pay $200,000 in costs and fees, but $180,000 will be suspended if he pays $20,000 promptly.

The defendants’ business primarily revolved around debts related to bounced checks, many of which were outside the statute of limitations and could not be the basis of a legal action. In some cases, the defendants added fees in excess of the amounts allowed by law and demanded penalties of up to three times the amount of the bounced check, often called “treble damages.”

Treble damages only can only be assessed following a successful lawsuit. The defendants and their businesses also were suspected of sending out collection letters on law firm letterhead without being reviewed by an attorney.

None of the three attorneys was licensed to practice in Colorado.

One Response to Attorneys barred from collecting debts in Colo.

  1. Lawyers breaking the law – imagine my shock, NOT!

    March 11, 2010 at 1:23 pm