Unicredit America, a now-defunct debt collection agency based in Erie, New York, has been hit with a renewed suit from the state's attorney general.
The suit is designed to hold the company's president and vice president, Michael and Anthony Covatto, personally liable for its violations of consumer protection laws, according to a report from the Erie Times-News. The original suit alleged that Unicredit operated a fake courtroom in Erie and used deceptive and intimidating practices to draw debtors into making payments.
The attorney general's office originally sought to add the Covattos to the suit in June, but a personal Chapter 13 bankruptcy filing by Michael slowed the process, the report said. In November, a bankruptcy court judge ruled that the personal filing did not insulate Covatto from the Bureau of Consumer Protection.
When consumers owe money to lenders or have their balances sold to debt collections agencies, it's important for them to know their rights. Doing a bit of research into what options are available to them given their particular state's consumer protection laws will do a world of good.