An Amherst debt collection firm will pay $35,000 in costs and penalties and reform its business after being accused of “deceptive and abusive practices” by the state Attorney General’s office.

Attorney General Andrew M. Cuomo said Wednesday his office had reached a settlement with Aurora, Gold & Associates. Cuomo’s office accused Aurora Gold of illegal practices including collectors pretending to be attorneys, threatening consumers with fictitious lawsuits and discussing confidential debtor information with unrelated parties.

[Wow!  With all respect Matt Glynn, you really took the cotton ball approach on this story - we like the Attorney General's Original Press Release instead...]  LINK

In addition to paying penalties and costs, Aurora Gold is required to make a

number of immediate reforms, such as committing more personnel and funds to its compliance division, state officials said. It must also file a report with the state Attorney General’s office by July 30 proving that it is complying fully with the agreement.

The company paid $15,000 of its costs and penalties on Wednesday, the state Attorney General’s office said. It owes an additional $10,000 by June 1, and the remaining $10,000 by Aug. 1.

An Aurora Gold employee, who did not identify herself, said the company would not comment on the settlement and hung up. A message left for a company attorney was not returned.

Aurora Gold was accused of using tactics such as repeatedly calling debtors’ friends and family members in attempts to obtain addresses and other information, despite being asked to stop calling. The Attorney General’s office also claimed Aurora Gold’s Web site contained statements that created the false impression it was a law firm and could sue debtors.

Cuomo’s office said in one instance, a collector pretending to be an attorney left a message on a consumer’s answering machine in which he told the consumer there was a “pending civil suit” against her. The company fired the employee after it was notified of the incident by the state Attorney General’s office.

The Better Business Bureau gives Aurora Gold an “unsatisfactory” rating on its Web site, and notes that the business is not BBB-accredited. The site says Aurora Gold had resolved one of two complaints made to the BBB related to service. It also said the company had resolved two of three complaints related to credit or billing, and had not responded to the third complaint.