The state Attorney General of Pennsylvania, Tom Corbett, has gone to court to stop an Erie County debt collection company, Unicredit America, Inc., from using 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 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; two tables and chairs in front of the “bench” for attorneys and defendants; a simulated witness stand; seating for spectators; and legal books on bookshelves. During some proceedings, an individual dressed in black was seated where observers would expect to see a judge.
Corbett said, “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. 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 allegedly used civil subpoenas to summon consumers to an office in Erie, which included an area referred to by Unicredit employees as “the courtroom.”
Corbett is seeking 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.
A hearing has been scheduled for Dec. 13 before Erie County Judge Michael E. Dunlavey.