Debt Collector Gets Penalty of $75,000 or 600 Hours of Service, License Revoked

The Minnesota Department of Commerce recently revoked the license of a collection agency based in the state and also revoked the debt collector registration of its owner. But the Department included an unusual penalty in the individual case of the owner.

Mankato, Minn.-based Accounts Receivable Control, Inc. had its licensed revoked in late July. According to a statement from the Department of Commerce to insideARM.com, the firm had failed to pay close to $190,000 in collected money to healthcare clients in the state, leading to spate of complaints.

During the investigation, regulators learned that a buyer was willing to step in and take over the company and make good on the outstanding money owed to clients. After an extensive process, the deal was allowed to go through so that the company could continue operations in its office, albeit under a different name. Part of the agreement required the new owner to appoint a CPA to ensure money would flow to clients.

Separately from the action against the company, the Department announced that it had reached an agreement with the firm’s previous owner, Nathan Meehling. Under the consent order, Meehling’s debt collector registration in the state was revoked and he was fined $75,000.

But Meehling’s fine will be stayed if he completes 600 hours of community service over the next two years.

The community service penalty is not common in the accounts receivable management industry. The Department declined further comment beyond its statement and repeated attempts to reach Meehling were unsuccessful.