Fines Sought Against Unlicensed Collection Agency

Hartford — Attorney General Richard Blumenthal recently announced that a Superior Court judge granted his request for an injunction barring a New Jersey company and law firm, and their owner, from acting as a debt collection agency without a license. Mr Blumenthal sought the injunction on behalf of Banking Commissioner John P. Burke.

The action bars debt collection in Connecticut by JBC Legal Group, PC — formally known as JBC & Associates, PC — Boyajian Law Offices, PC, and their owner, Jack H. Boyajian, all of New Jersey.

Mr Blumenthal’s complaint seeks $100,000 in fines against Mr Boyajian and each of his two business entities for collecting debt without a license.

“I’m pleased that the court halted this deliberate defiance of Connecticut debt collection laws,” Mr Blumenthal said. “These entities and their owners are law breakers — engaging in illegal debt collection — and are under investigation for harassing consumers with time-barred or unverified debts. I will aggressively seek the maximum penalty, $100,000, to ensure strict adherence to laws that protect consumers from debt collection abuses. Conducting debt collection without a license endangers and damages the public, and leads to the abuses under investigation.”

“Despite repeated efforts by the Department of Banking to prevent JBC from conducting illegal business in this state, the company continued to mislead Connecticut consumers in its debt collections efforts,” Commissioner Burke said. “Through our joint effort with the attorney general, we can ensure that Connecticut consumers are safe once and for all from the illegal conduct of JBC and Mr Boyajian.”

Under a 2004 settlement with the state, the Department of Banking denied Mr Boyajian and JBC a license to collect debt agreed, and JBC paid an $18,000 fine and agreed to stop collecting debt in Connecticut. The Banking Department recently obtained evidence that JBC, Jack Boyajian, and Boyajian Law Offices have resumed illegal, unlicensed debt collection in violation of the agreement.

The Department of Banking has received 13 consumer complaints since 2005 alleging that Boyajian Law Offices collected debt without a license. The complaints allege that the law firm tried to collect unverified or time-barred debts and/or failed to provide consumers with evidence that they owed a debt.

The Attorney General’s Office and the Department of Banking are investigating the complaints.

Anyone with complaints against Boyajian Law Offices or JBC should contact the Attorney General’s Office at 860-808-5270.