Parking Revenue Recovery Services, Inc. (PRRS), a prominent collections company, has recently made headlines with respect to the Colorado Fair Debt Collection Practices Act (CFDCPA). The company is now facing allegations of illegally collecting or attempting to collect parking fines that had been previously settled or were not attributed to the correct vehicle owner.
These claims of violating the CFDCPA are not only limited to the misuse of payment information. PRRS is also being reprimanded due to professional negligence concerning their collection license which expired on July 1, 2022. They did not submit a renewal application until five months later, in December 2022, yet they continued to collect debts within the state, unabated, during this period without a valid license.
As reported by JD Supra, these alleged violations led the company down a costly path, with PRRS being ordered to pay $106,000 in fines as a consequence. The case serves as a timely reminder to legal professionals, particularly those working in compliance, to ensure that corporations are fulfilling their obligations and remaining within the confines of the law.
While the financial penalty is significant, the reputational damage to PRRS could be more destructive in the long run. This case underscores the critical role corporate legal teams play in safeguarding not just the fiscal integrity of a company, but also its public reputation and trust. This ongoing situation with PRRS serves as a clear signal to corporations and law firms alike about the importance of diligent application of legal licenses and strict adherence to debt collection practices, irrespective of the sector they operate in.