A New York debt collection company must pay a $100,000 civil penalty and stop operating in Connecticut after regulators found it repeatedly harassed debtors — including by calling a hospital’s emergency line to collect a debt after being told to stop.
A New York debt collection company has been ordered to pay a $100,000 civil penalty and stop operating in Connecticut after regulators found it repeatedly harassed debtors — including by calling a hospital’s emergency medical phone line to collect a debt even after staff told the company to stop.
Banking Commissioner Jorge Perez issued the cease-and-desist order and civil penalty against Omnipoint Management Solutions LLC of West Seneca, New York, on Feb. 10, according to records from the Connecticut Department of Banking.
Regulators alleged that Omnipoint operated in Connecticut as a consumer collection agency without the required state license and contacted third parties without debtors’ consent — both violations of state law. The company also allegedly engaged in conduct designed to harass, oppress or abuse individuals in connection with debt collection, in violation of state regulations and the federal Fair Debt Collection Practices Act.
The most egregious conduct cited by regulators involved Omnipoint communicating with hospital staff through an emergency medical phone line after staff explained the nature of the line and asked the company not to call it.
The department issued a notice of intent to take action against Omnipoint on Jan. 6, giving the company 14 days to request a hearing. Omnipoint did not respond, causing the allegations to be deemed admitted under state law.
As a result, Perez ordered the company to cease and desist from further violations and pay the $100,000 penalty within 45 days.
