AG wins $23M in financial relief for 20K victims of Charlotte-area debt collector

RALEIGH — Attorney General Josh Stein won a consent judgment against Gordon Scott Engle, of Cornelius, and his Texas-based debt collection companies.

The judgment means Engle doesn’t have to admit to any wrongdoing.

Defendants allegedly sent fake court notices to consumers, threatened to arrest some, and filed criminal complaints in several cases that resulted in actual criminal summonses against customers, the attorney general’s office stated.

The judgment also provides nearly $22 million in consumer debt forgiveness for more than 20,000 people, and full refunds of $223 to more than 650 people.

Stein sued Engle and the defendants in 2019 and claimed that the debt collector bought consumer debt from the rental chain, Aaron’s, and tried to collect it.

Action 9 investigator Jason Stoogenke emailed Engle Tuesday about the case.

Engle responded saying he was allowed to file criminal complaints and that prosecutors made the ultimate decision whether to pursue them.

Engle did concede that he didn’t have the paperwork to collect debts in North Carolina.

Stoogenke also emailed Aaron’s, but has not heard back.

The defendants are also permanently banned from collecting debt in North Carolina and must:

  • Give up any claims to the property that was the subject of the debt.
  • Clear negative credit lines at credit reporting agencies.
  • Stop collecting on any civil judgments and file to vacate those judgments.
  • Cooperate with consumers and the courts to get criminal convictions and pending charges expunged.
  • Report compliance to the attorney general’s office.

“This debt collector operated illegally in North Carolina and took advantage of hardworking people,” said Stein in a news release. “My office will hold accountable companies that break the law, and I’m pleased that this court order will bring real financial relief for more than 20,000 North Carolina consumers.”

VIDEO: Debt collector accused of using deceptive notices

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