Parking Revenue Recovery Services, Inc. (PRRS), a collection company, was accused of violating the Colorado Fair Debt Collection Practices Act (CFDCPA) by allegedly illegally collecting or attempting to collect on parking fines that were already paid or were incurred by another vehicle owner. PRRS was also accused of allowing its collection license to expire on July 1, 2022, not submitting a new license application until December 2022, but still continuing to collect debts in the state in the interim.
According to the State Attorney General’s press release, PRRS’s practices were called to the office’s attention after it received “numerous complaints” regarding attempts to collect debts from consumers who paid to park in the lot but entered the wrong license plate number, customers who did not park in the lot but still received collection notices sent to the wrong individuals, and customers who did not receive a 15-mintue grace period. In notices sent to consumers, the company would include fees of up to $88.
Pursuant to the Assurance of Discontinuance, PRRS agreed to pay $75,000 to the Attorney General’s Office, issue $31,000 in refunds to 442 consumers, and make changes to its collection practices. The company denied the allegations, but “agreed to the settlement to avoid the inconvenience and expense of a dispute.”