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NCO Group Inc., the largest accounts receivable management company based on revenue, agreed to pay $250,000 to the state of Texas for allegedly violating the Texas Debt Collection Act. Texas Attorney General Greg Abbott said in a press release the enforcement action targeted NCO Group's debt-buying unit, NCO Portfolio Management. Abbott's office said the agency made "harassing and sometimes profanity-laden telephone calls" and did not verify the validity of debts when consumers challenged them. Under the settlement, which the attorney general's office confirmed today, Horsham, Pa.-based NCO Group admitted no wrongdoing. "Texas law prohibits collection agencies from using unlawful threats and coercion to collect debts," according to the attorney general's statement. "With today's agreement, the world's largest debt collector agreed to implement safeguards that will protect debtors and ensure full compliance with the law." NCO Group will pay $100,000 to the state's general revenue fund and $150,000 to the state's attorney general's office to cover legal fees stemming from the investigation. In a statement, the company announced plans to spend $300,000 on compliance programs in the next three years, specifically on technology to strengthen communications with consumers. NCO Group reported $1.2 billion in revenue in 2007, according to Collections & Credit Risk, a CardLine sister publication. The company has more than 7,200 collectors. NCO Portfolio Management purchases bad debt, including charged-off Visa, MasterCard and private-label credit cards, from banks, finance companies and retailers in the United States, United Kingdom and Canada.
