Minnesota debt collector loses license, must pay fine

A Lonsdale, Minnesota-based debt collector recently had his license revoked by the Minnesota Department of Commerce after being found to have violated the Fair Debt Collection Practices Act as well as state law, according to the Northfield News. Khemall Jokhoo, owner of First Financial Services, allegedly threatened to have consumers arrested and engaged in harassing and abusive conduct, including misidentifying himself as a federal investigator and a lawyer during the collection process. "We have shut down First Financial Services for oppressive debt-collection practices, which were reprehensible," said Commerce Commissioner Mike Rothman, quoted by the news source. "This company caused consumers considerable loss and aggravation. By revoking their licenses and fining them $100,000, we want to be clear that these practices are not tolerated." This case underscores the importance of adhering to state and federal debt collection standards. Movie Gallery, the parent company of the now-defunct movie and video game rental chain Hollywood Video, recently canceled fees added to its customers' principal debt amount as part of a settlement that was reached after attorneys general nationwide began receiving complaints from customers reporting damaged credit scores and excessive fees.