NY Attorney General Fines Buffalo Collection Agency

The office of New York Attorney General Andrew Cuomo announced Wednesday that it had reached a settlement with a collection agency based in suburban Buffalo, N.Y. over what it says were “deceptive and abusive practices.”

The announcement from the AG’s office said that Aurora, Gold & Associates, LLC, based in Williamsville, began operations in April 2007 and actively engaged in practices such as collectors pretending to be attorneys, threatening consumers with fictitious lawsuits and discussing confidential debtor information with unrelated parties. Under the terms of the settlement, Aurora will pay $35,000 in penalties and costs and reform its business practices.

Tactics used by Aurora included repeatedly calling debtors’ family and friends in attempts to find addresses and other information, despite requests to stop calling. The investigation also found that Aurora’s Web site contained statements that created the false impression that it was a law firm and could sue debtors.

In a press release issued by the AG’s office, officials noted that one incident in which a collector posed as an attorney on a voice mail had already led to that collector’s dismissal once the AG’s office informed Aurora of the action.

Pursuant to the business reforms, Aurora must file a report with the AG’s office by July 30 proving that it is in full compliance.

"It is not acceptable for debt collection companies to harass consumers to the point where they overstep legal boundaries,” said Cuomo in the release. “Collecting money from debtors is one thing, but by using dishonest and illegal tactics, this company misled consumers and violated the law. This agreement requires that it reform its business practices to be in line with New York state and Federal laws.”