CHARLESTON -- West Virginia Attorney General Darrell McGraw announced on Wednesday that he has established a new claims process that will help some students collect refunds from an illegal debt collector.
McGraw's Consumer Protection Division filed a lawsuit against Ohio collection agency National Enterprise Systems last year, alleging the company used strong-arm debt collection tactics on students. NES was accused of telephone harassment and making false threats of arrest.
It was also alleged that NES added a collection fee to money owed by former students of West Virginia colleges and universities for tuition, which, under state law, is not allowed. NES denied the allegations and claimed that the schools added the fees to the debts.
NES agreeing to pay $75,000 to the state in a court order that settled the case, with a majority of the money going toward refunds to the students who were illegally charged.