HomeMy WebLinkAbout99-00405
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WHEREAS. based upon its investigation, the Commonwealth believes that the
Respondent has engaged in conduct violative of the Consumer Protection Law and the Debt
Collection Trade Practices Regulations. 37 Pa. Code 303.1-303.9 ("Debt Collection Regs").
as more fully set forth below:
1. The Respondent, through its Association Management Division, collects
association dues from unitowners as an agent for condominium associations.
2. In one instance, several unitowners did not pay their dues.
3. The Respondent, through its Association Management Division, engaged in the
collection of the allegedly delinquent dues.
4. In the course of collecting these alleged debts, the Respondent sent letters to 27
unitowners, or their mortgage holder with a copy to the unitowners, which stated, among other
things, that the delinquent account had been reported to "the Credit Bureau."
5. However, neither the Respondent nor the creditor had actually reported the debt
to the "Credit Bureau."
6. The Respondent states that, despite the Respondent's policy and practice to
report delinquent accounts to the Credit Bureau of Greater Harrisburg, the delinquent accounts
inadvertently had not been reported to the Credit Bureau of Greater Harrisburg.
7. The Commonwealth alleges that the Respondent represented that it had taken
action that it did not take and had no intention of taking, which, if proven,violates * 201-3 of
the Consumer Protection Law, as defined by * 303.3(14) of the Debt Collection Regs.
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8. The Commonwealth alleges that the Respondent used a false representation and
deceptive means in attempting to collect a debt, which, if proven, violates * 201-3 of the
Consumer Protection Law, as defined by * 303.3(18) of the Debt Collection Regs.
9. The term "Credit Bureau" utilized by the Respondent in its letter is a generic
term that does not indicate to whom the Respondent allegedly reported the alleged debt. The
Commonwealth alleges that the Respondent's use of this term rather than naming the credit
bureau or reporting agency to which the alleged debt was allegedly reported could cause a
likelihood of confusion and misunderstanding among consumers; which, if proven, violates *
201-2(4)(xxi) of the Consumer Protection Law.
10. Fifteen (\5) of the unitowners to whom the Respondent sent the subject letters
were age 60 or older.
WHEREAS, the Respondent is desirous of complying with the civiJlaws of the
Commonwealth; and
WHEREAS, under the Consumer Protection Law, this Assurance of Voluntary
Compliance shall not be considered an admission of a violation for any purpose; and
WHEREAS, this Assurance of Voluntary Compliance is accepted by the
Commonwealth pursuant to * 201-5 of the Consumer Protection Law in lieu of commencing
statutory proceedings under * 201-4.
NOW THEREFORE, having conducted trade and commerce within the
Commonwealth, effective from the date of the signing of this Assurance of Voluntary
Compliance, the Respondent, Property Management, Inc., agrees for itself, its successors,
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