The Ultimate Irony – The State of West Virginia Needs Help in a Debt Collection Matter

Tim Bauer

I saw this story from the Charleston Gazette-Mail today. The headline caught my attention, “Morrisey aims to collect $13.8 million from usurious lender”

But, the first sentence in the article really grabbed me. It read:

“West Virginia Attorney General Patrick Morrisey is seeking to hire a lawyer licensed in California to help collect a $13.8 million judgment against a loan company that charged exorbitant interest rates and harassed borrowers.”

The West Virginia Attorney General’s Office has obtained a $13.8 million dollar judgment against an Orange County, California company, Cash Call.  The judgment was the result of litigation initiated by the Attorney General that alleged the company had violated a host of West Virginia consumer protection laws and that the company duped consumers into paying incredibly high interest rates on their loans.

The State of West Virginia has a reputation for being one of the most treacherous for collection activity, with statutes more stringent than the FDCPA and a very active and aggressive Consumer Rights Bar. I know of several well-managed ARM companies that simply won’t attempt any collection activity in the State of West Virginia.  Their thought process is that because the population of West Virginia is roughly .05% of the total population in the United States, the risk of collecting on West Virginia accounts simply outweighs any potential reward.

Ignoring the merits of the case and judgment against Cash Call, I find it the ultimate irony that West Virginia would consider retaining a collection lawyer to help recover all or part of the $13.8 million dollar judgment. It seems to me that all collection “people” or companies are considered pariahs in West Virginia.  But when there is a “need” for help I guess you can look past that issue.