October 29, 2010
The state Attorney General's Office has gone to court to stop an Erie debt collection company from using what it says are misleading, confusing and coercive tactics to extract payments from debtors, including summoning them to hearings held in a fake courtroom and threatening them with arrest by Sheriff's deputies.
The lawsuit against Unicredit America, Inc. was filed in Erie County Court by Deputy Attorney General Leslie M. Grey and Senior Deputy Attorney General Jesse F. Harvey of the Attorney General's Bureau of Consumer Protection.
It seeks restitution for all consumers who have been harmed by Unicredit's alleged unfair trade practices, along with civil penalties of up to $1,000 for each violation or up to $3,000 for each violation involving a victim age 60 or older. Accompanying the lawsuit is a petition for special and preliminary injunction that asks the court to freeze all Unicredit assets and prohibit the company from engaging in any debt collection.
Authorities additionally ask the court to order the company at 1537 W. 39th St. to immediately cease all bogus hearings or depositions and provide detailed information about company bank accounts, assets and business records.
A hearing has been scheduled for Dec. 13 before Erie County Judge Michael E. Dunlavey.
Michael Covatto, president of Unicredit, said this morning that he had no knowledge of the court action.
Erie lawyer Larry D'Ambrosio is accused of orchestrating the hearings held in the mock courtroom at 1537 W. 39th St. He could not immediately be reached for comment.
Authorities charge that Unicredit used civil court subpoenas to summon consumers to fake court hearings that were used to intimidate consumers into providing access to bank accounts, making immediate payments or surrendering vehicle titles and other assets. Sometimes, the complaint charges, Unicredit employees were sent to consumers' homes in order to retrieve documents or have consumers sign payment agreements.
The fake courtroom allegedly contained furniture and decorations similar to those used in actual court offices, including a raised "bench" area where a judge would be seated.
During some proceedings, authorities charge, an individual dressed in black was seated where observers would expect to see a judge.
"This is an unconscionable attempt to use fake court proceedings to deceive, mislead or frighten consumers into making payments or surrendering valuables to Unicredit without following lawful procedures for debt collection," Attorney General Tom Corbett said.
"Consumers also allegedly received dubious 'hearing notices' and letters -- often hand-delivered by individuals who appear to be sheriff deputies -- which implied they would be taken into custody by the Sheriff if they failed to appear at the phony court for 'hearings' or 'depositions'."
Corbett said Unicredit is accused of violating Pennsylvania's Consumer Protection Law and the Fair Debt Collection Practices Act. He said the company also failed to comply with state and Erie County Court rules in order to extract payments from consumers.
Corbett urged consumers with complaints or questions related to Unicredit debt collection practices to call the Attorney General's Consumer Protection Hotline at 1-800-441-2555 or file an online consumer complaint using the Attorney General's website, at www.attorneygeneral.gov. (Click on the "Complaints" button on the front page of the website and select the "Consumer Complaint Form" from the menu list).
The state Attorney General's Office has gone to court to stop an Erie debt collection company from using what it says are misleading, confusing and coercive tactics to extract payments from debtors, including summoning them to hearings held in a fake courtroom and threatening them with arrest by Sheriff's deputies.
The lawsuit against Unicredit America, Inc. was filed in Erie County Court by Deputy Attorney General Leslie M. Grey and Senior Deputy Attorney General Jesse F. Harvey of the Attorney General's Bureau of Consumer Protection.
It seeks restitution for all consumers who have been harmed by Unicredit's alleged unfair trade practices, along with civil penalties of up to $1,000 for each violation or up to $3,000 for each violation involving a victim age 60 or older. Accompanying the lawsuit is a petition for special and preliminary injunction that asks the court to freeze all Unicredit assets and prohibit the company from engaging in any debt collection.
Authorities additionally ask the court to order the company at 1537 W. 39th St. to immediately cease all bogus hearings or depositions and provide detailed information about company bank accounts, assets and business records.
A hearing has been scheduled for Dec. 13 before Erie County Judge Michael E. Dunlavey.
Michael Covatto, president of Unicredit, said this morning that he had no knowledge of the court action.
Erie lawyer Larry D'Ambrosio is accused of orchestrating the hearings held in the mock courtroom at 1537 W. 39th St. He could not immediately be reached for comment.
Authorities charge that Unicredit used civil court subpoenas to summon consumers to fake court hearings that were used to intimidate consumers into providing access to bank accounts, making immediate payments or surrendering vehicle titles and other assets. Sometimes, the complaint charges, Unicredit employees were sent to consumers' homes in order to retrieve documents or have consumers sign payment agreements.
The fake courtroom allegedly contained furniture and decorations similar to those used in actual court offices, including a raised "bench" area where a judge would be seated.
During some proceedings, authorities charge, an individual dressed in black was seated where observers would expect to see a judge.
"This is an unconscionable attempt to use fake court proceedings to deceive, mislead or frighten consumers into making payments or surrendering valuables to Unicredit without following lawful procedures for debt collection," Attorney General Tom Corbett said.
"Consumers also allegedly received dubious 'hearing notices' and letters -- often hand-delivered by individuals who appear to be sheriff deputies -- which implied they would be taken into custody by the Sheriff if they failed to appear at the phony court for 'hearings' or 'depositions'."
Corbett said Unicredit is accused of violating Pennsylvania's Consumer Protection Law and the Fair Debt Collection Practices Act. He said the company also failed to comply with state and Erie County Court rules in order to extract payments from consumers.
Corbett urged consumers with complaints or questions related to Unicredit debt collection practices to call the Attorney General's Consumer Protection Hotline at 1-800-441-2555 or file an online consumer complaint using the Attorney General's website, at www.attorneygeneral.gov. (Click on the "Complaints" button on the front page of the website and select the "Consumer Complaint Form" from the menu list).
Closed November 2010
341 hearing Aug 12, 2010 
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