Minnesota Attorney General Sues Debt Collector Over Bank-Fee Pursuit
ST. PAUL (AP) - A debt collector associated with two big banks is being sued by Minnesota's attorney general over steep interest rates charged to people with overdrawn checking accounts.
Minnesota Attorney General Lori Swanson alleged Wednesday that Minneapolis-based Bradstreet and Associates broke state law by charging up to 21.75 percent in interest on the bank debt. The lawsuit says the company was pursuing debt from overdraft costs and related fees on Wells Fargo and US Bank accounts.
Swanson says the assessed interest rates weren't allowed in the customers' original banking contracts and was many times what state law allows.
Calls to Bradstreet's phone numbers did not go through. The company did not immediately return an email seeking comment.
The case in Hennepin County seeks restitution and a halt to the collection practices.