Maryland debt collection agency penalized for improper practices

A Maryland financial services group has agreed to cease all debt collection lawsuits against state consumers. The Maryland Department of Labor, Licensing and Regulation rejected Sunshine Financial's application for a license in July, citing inconsistencies with the amounts the company claimed it was owed, according to the The Baltimore Sun. The company, also agreed to either forfeit $665,000 or repay attorney fees and interest dues it had improperly sought. However, the company maintains it has been honest in its debt collection and bureau reporting practices. "It agreed to refund improper attorney fees and interest to consumers who have paid off judgments entered against them," reports Jamie Smith Hopkins for the source, "and it will forgo those amounts on judgments that have not yet been satisfied and accounts it had not yet tried to collect." The story comes as a number of private sector debt collection agencies have come under attack for unfair practices. As state governments look to increase revenue through heightened debt collection practices, private firms have been stepping up to fill demand.