FOX 4 WFTX - Cape Coral, Fort Myers, Naples News, WeatherCalif. debt firm settles Pa. class-action suit
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Associated Press - November 3, 2009 5:44 PM ET
Corrected Version
PITTSBURGH (AP) - A California debt collection company has agreed to a $2.55 million judgment to settle a lawsuit brought by thousands of Pennsylvanians who claim they were wrongly led to believe they had to pay costly fees to avoid criminal charges for bouncing checks.
American Corrective Counseling Services admits no wrongdoing as part of the settlement approved Monday in bankruptcy court in Delaware.
The company sent letters purporting to be from Pennsylvania district attorneys' offices to people who bounced checks.
The letters indicated a crime had been committed because the checks bounced. But the letters say that the check bouncers would avoid penalty by paying off the checks and fees and by attending a financial accountability class.
A company attorney declined to comment.
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