$10 Million Lawsuit Filed Against Debt Collection Giant for Harassing Calls to Consumers

Los Angeles County District Attorney Jackie Lacey announced today a $10 million lawsuit against debt collection giant iQor US, Inc., and its subsidiary Allied Interstate, LLC, for placing unlawful and harassing calls to consumers.

The civil complaint filed today in Los Angeles County Superior Court alleges that iQor and Allied violated state and federal laws as well as consumers’ right to privacy. The lawsuit was filed jointly by district attorneys in Los Angeles, Riverside, San Diego and Santa Clara counties.

The companies are accused of a myriad of offenses, including subjecting many individuals to repetitive calls for months on end, even when no money was owed.

For example the complaint cites the case of a couple from Windsor, Calif., who received hundreds of calls from Allied for more than three years, despite their continual efforts to convince the company’s representatives they called the wrong number. Even after repeated pleas and a call to the company from a police officer, the calls persisted. Allied ceased the calls only after being notified that the couple had contacted the California Attorney General’s Office.

In addition, iQor and Allied used automated dialers to call cell phones without permission in violation of federal law. The companies also called people before 8 a.m. and after 9 p.m. and tried to collect debts that had been discharged in bankruptcy.

Allied has a history of predatory harassment through its network of global phone operations and has been the subject of numerous prior lawsuits, including a $1.75 million settlement with the Federal Trade Commission in 2010.

The complaint seeks $10 million in civil penalties for the continued violations. Any amount from a judgment would be used for future public consumer protection work.

California consumers who have been victims of repeated unwarranted calls from these companies are asked to contact (619) 531-3115, a consumer hotline, with their information.