Glass Shop Owner Banned from Continuing to do Business Under Current
Name; Neon Barred from Collecting Consumer Debts in State
The state attorney general for New York, Andrew M. Cuomo, announced
yesterday that his office has obtained settlements with Neon Claims
Advantage LLC of Nebraska and Alan Moore, the former owner of the
defunct Quality First Auto Glass, in Amherst, N.Y.
With the settlement, the attorney general's office has barred Neon
from collecting consumer debts in New York state after it failed
to include required language in letters it sent to consumers in
violation of the Fair Debt Collection Practices Act.
Likewise, the attorney general's office permanently barred Moore
from doing business as Quality First Auto Glass (though he did close
the business in February 2006). Moore had attempted to collect more
than $233,000 from 424 consumers in the state, resulting from reduced
reimbursements from insurance companies. Moore had contracted Neon
to collect the outstanding balances directly from consumers-after
their insurers failed to pay the full amount invoiced by Moore's
"Insurance companies and the auto repair industry have established
processes for reimbursing service providers for automobile glass
replacement," says Cuomo. "Fortunately, my office discovered
the business's and its debt collector's attempts to illegally collect
the difference before they actually defrauded Western New York consumers."
According to a statement issued by the attorney general's office,
Moore was in business from 1993 to 2006. After he went out of business
in February 2006, he contracted Neon to assist him in collecting
outstanding balances directly from consumers.
Among the items listed in the statement from the attorney general's
office was one claim in which Moore submitted a $1,061.69 claim
to an insurance company, and received a payment of $476.19. After
going out of business, Moore sought the remaining $585.50 from the
consumer, according to the statement.
Moore provided 424 accounts worth a total of $233,000 to Neon Claims
Advantage, according to the report. The Attorney General's Office
found that Neon made misleading claims and failed to validate the
amount of the debt in letters to consumers, in violation of the
Fair Debt Collection Practices Act.
Neon representative Lynette Hartman issued the following statement
to glassBYTEs.com/AGRR magazine this afternoon regarding
"We relied on legal counsel to design the letters and develop
a collections program legal and useable in all 50 states,"
says Hartman. "An issue was discovered, [and] it has been rectified
and we have since turned the letters and program development over
to an attorney who specializes in collections."
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