Oklahoma-based National Credit Solutions (NCS) has been sued by Montana Attorney General (AG) Steve Bullock for allegedly engaging in unfair and deceptive business practices as it worked for movie rental chains Hollywood Video and Movie Gallery. Its parent company, Movie Gallery, Inc., had operated as many as 24 locations across Montana, but closed them in 2009 and 2010 when it went bankrupt.
According to Bullock, NCS allegedly sent negative credit reports to national reporting bureaus for debts supposedly accrued by customer transactions with the stores. Furthermore, evidence shows customers were not notified of their alleged debt.
An investigation by the Office of Consumer Protection discovered that over 12,000 Montanans, amounting to nearly one percent of the state’s population, have been impacted by NCS’s misdeeds. In his suit, Montana’s AG claims that NCS requested customers pay $75 in collection fees in addition to the monies the company said were due and owing.
While Montana law permits creditors to collect legitimate debts, the creditor must also provide customers with notice of the debt so they either pay or dispute it.
The Jayaram Law Group routinely and successfully assists its clients in their business-to-business (b2b) collection needs. We take pride in obtaining payment on accounts receivable without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.
If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm.