Debt companies to pay $9M to settle suit over illegal calls

LOS ANGELES (AP) — Debt collection companies have agreed to pay $9 million and curb illegal phone-calling practices to settle a civil lawsuit brought by prosecutors in California.

The Los Angeles County District Attorney’s Office says the deal with Allied Interstate, parent company iQor Holdings and affiliated firms was approved by a judge Tuesday.

The lawsuit alleged the companies engaged in illegal debt collection practices including calling consumers with excessive frequency and failing to stop calling even when told they had reached a wrong number.

The settlement sets strict phone call parameters over the next five years.

The judgment includes $8 million in civil penalties plus $1 million to reimburse prosecutors for the costs of investigating and filing the case.