A debt collection agency run by a convicted felon and accused of strong-arm collection tactics has been barred from collecting debts in Colorado, Colorado Attorney General John Suthers announced today.
The agency, known as David Faith & Associates, was operated by Chad Lee, described in an Attorney General’s administrative ruling as the president and sole stockholder in the debt collection agency.
The ruling said Lee was convicted of class 4 felony theft in Arapahoe County in 1999. Under Colorado law, individuals convicted of theft and similar crimes are banned from acting as an officer, director, owner or debt collector of a collection agency, according to the ruling.
Further, the Attorney General’s Office found that one of Lee’s debt collectors, Cody Tervort, pleaded guilty in 1998 to shoplifting in Utah.
Because the debt collection agency is owned by a felon and its president is a felon, the agency is not eligible to be licensed as a debt collection agency in Colorado, according to the attorney general’s ruling.
In the lengthy ruling, the attorney general’s office found that the agency – David Faith & Associates – engaged in harassment or abuse/threats of violence; made false representations as to the legal status of debts; made false and misleading representations that nonpayment of debts would result in arrest, and that Lee failed to disclose his felony conviction.
The Attorney General’s office found that the company tried to collect debts prior to obtaining a license from the state, that Tervort threatened to physically harm a consumer and that Tervort attempted to collect a judgment against the wrong individual claiming that David Faith & Associates was a law firm. It is not.
Consumers who believe they have been defrauded or harassed by a debt collection agency can file a complaint on line at , by calling 303-866-5304 or by e-mail at cab@state.co.us.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
