West Virginia Sues To Stop Collection Efforts For Bogus Magazine Sales

April 25, 2006
West Virginia has gone to court to stop a Florida collection agency from trying to collect debts supposedly based on magazine subscription purchases.

West Virginia Attorney General Darrell McGraw took the action against Check Game Solutions and its President, Catherine Key of Vero Beach, Florida.

McGraw says problems began when CGS's client, Universal Subscription Agency, sent vendors into West Virginia selling magazines door to door.

Consumers were taken in by the young vendors' pleas for assistance in meeting sales quotas, and wrote checks on the spot to purchase subscriptions for various magazines.

Some consumers regretted the purchase right away and, when they could not find the salesperson in their neighborhoods, decided to stop payment on their checks.

Under West Virginia law, contracts for multiple magazine subscriptions can be canceled at any time and for any reason.

Instead of canceling the purchases, McGraw says Universal hired CGS to send debt collection letters to consumers, accusing the consumers of writing the magazine company bad checks. In one case, CGS threatened to turn the debt over to the "Worthless Check Division" of the "State Attorney's Office," a fictitious entity made up by CGS to frighten consumers.

CGS has never obtained a license to conduct business as a collection agency in West Virginia, and has failed to post a bond as required by law.

McGraw's office attempted to resolve complaints against CGS informally, but he says CGS refused to settle the matter. McGraw said his office had no other choice but to sue CGS.

In his suit, McGraw seeks a preliminary injunction barring CGS from conducting any debt collection activity in West Virginia until the case can be resolved, and asks that the Court eventually order restitution, debt cancellation, and civil penalties.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Share		Follow us on Twitter.

Back to the top |