3 collection agencies owe NC consumers refunds

Three collection agencies have agreed to pay a total of $493,670 in civil penalties and offer refunds to North Carolina consumers to resolve allegations raised by the state Insurance Department.

The three companies that have resolved allegations that they committed unfair practices are: EGS Financial Care, formerly NCO Financial Systems; Systems and Services Technologies; and Transworld Systems.

The settlement, announced Monday by the Insurance Department, also calls for those three companies to refund convenience fees they charged consumers from Aug. 1, 2010, through March 31, 2014. The companies also have agreed to permanently halt collection of convenience fees or any other fees from North Carolina consumers.

The Insurance Department began investigating the agencies after receiving a complaint that Transworld Systems drafted a $12 convenience fee from a consumer’s bank account in addition to her $50 monthly bill payment. The agency contended that was a violation of state law.

The agencies did not admit wrongdoing and deny they violated state law.

Consumers who paid a convenience fee to Transworld Systems, NCO Financial Systems or Systems and Services Technologies between Aug. 1, 2010 and March 31, 2014 can request a refund by writing: Mayas Erickson, Attorney; Sessions, Fishman, Nathan & Israel, LLC; 3850 N. Causeway Blvd., Suite 200; Metairie, LA 70002-7227. Refund requests must be submitted before Sept. 16, 2016.

For more information about the refund, contact attorney Mayas Erickson at 504-846-7914 or the North Carolina Department of Insurance at 855-408-1212.

This story was originally published October 5, 2015 at 2:31 PM with the headline "3 collection agencies owe NC consumers refunds."