The lawsuit, filed Sept. 14 in Kanawha Circuit Court, claims Beacon Asset Recovery Agency LLC and owner Nathan Pendergrass took advantage of an untold number of residents by charging a fee to recover unclaimed property without disclosing consumers can do just that for free through the West Virginia State Treasurer’s Office.
Morrisey's office also says Beacon conducted business without a license for private investigating and without required certifications from the State Tax Department and Secretary of State’s Office.
“Companies doing business in West Virginia must follow the rules,” Morrisey said in a statement. “Protecting consumers from unscrupulous businesses is central to the mission of my office.”
The lawsuit lists residents from Brooke and Summers counties as having received a letter from Beacon, which offered to assist in recovering specific amounts of cash for a fee equal to 33 percent of the recovered amount.
The complaint says Beacon disclosed having acquired specific information regarding unclaimed property possessed by the West Virginia State Treasurer’s Office and sent letters soliciting consumers to purchase its service. Beacon did not disclose the number of letters and recipient identities.
The lawsuit seeks a $5,000 civil penalty for each violation of the state’s Consumer Credit and Protection Act, in addition to a court order forcing Beacon to turn over all funds obtained as a result of its unlawful actions.
The case is being handled by Senior Assistant AG Norman Googel.
Kanawha Circuit Court case number: 16-C-1407