State AG Moves to Shut Down Collection Agency

Illinois Attorney General Lisa Madigan announced Wednesday that her office has launched an action to close down a debt collection agency operating in the state in what Madigan said was “one of the most egregious cases of illegal debt collection” during her tenure.

Madigan said that her office is pursuing Skokie, Ill.-based PN Financial Inc. and its owner, Nelson Macwan. The AG’s office had received 52 complaints about PN Financial and the Chicago Better Bureau Office reported 82 complaints filed against the firm.

The AG’s office contends that PN Financial ran afoul of various state and federal laws, including the Fair Debt Collection Practices Act (FDCPA) by disclosing debts to third parties, pretending to be a law firm – including the use of fake case numbers on certain collection letters, debiting more money from consumers’ bank accounts than consumers authorized, and accessing consumer credit reports without authorization.

Madigan said that PN Financial also attempted to collect debts it was not authorized to work and attempted to collect on accounts that were already paid off.

The lawsuit filed by Madigan’s office in Cook County Circuit Court seeks to shut down PN Financial, permanently bar it from debt collection in Illinois, provide restitution to affected consumers, and assess an array of civil penalties.