Banking Commissioner and Attorney General Seek Injunction, $100,000 Fines Against Law Firm and Owner For Debt Collection Without a License

This news release was issued jointly by the Department of Banking
and the Attorney General's Office.

Attorney General Richard Blumenthal today asked a Superior Court judge to grant an injunction and impose $100,000 fines against a New Jersey company and law firm, and their owner for acting as a debt collection agency without a state license. Blumenthal filed the action on behalf of Banking Commissioner John P. Burke.

Named in the action are JBC Legal Group, P.C. – formally known as JBC & Associates, P. C. – Boyajian Law Offices, P.C., and their owner, Jack H. Boyajian, all of New Jersey.

Under a 2004 settlement with the Banking Commissioner, Boyajian agreed that JBC would stop collecting debt in Connecticut without a state license. The Banking Department recently obtained evidence that JBC, Jack Boyajian and Boyajian Law Offices have resumed illegal, unlicensed debt collection in violation of the agreement.

“JBC and Boyajian Law Firm are law breakers – engaging in illegal debt collection – and under investigation for harassing consumers with time-barred or unverified debts,” Blumenthal said. “I will aggressively seek the maximum penalty – $100,000 – to ensure strict adherence to laws that protect consumers and against improper debt collectors and abuses. Conducting debt collection without a license endangers and damages the public, and leads to the abuses under investigation.”

“Despite repeated efforts by the Department of Banking to prevent JBC from conducting illegal business in this state, the company continued to mislead Connecticut consumers in its debt collections efforts,” Burke said. “Through our joint effort with the attorney general, we can ensure that Connecticut consumers are safe once and for all from the illegal conduct of JBC and Mr. Boyajian.”

The Banking Department in March 2004 moved to stop JBC from collecting debt without a state license. Boyajian and JBC settled the case in July 2004, agreeing to stop acting as a collection agency and pay an $18,000 civil penalty.

JBC, however, continued collecting consumer debt in violation of the agreement. Boyajian Law Offices also began illegal, unlicensed debt collection.

The complaint asks the court to order the firm to stop collecting debts in Connecticut and to impose up to a $100,000 fine on Boyajian and each of his two business entities.

The Department of Banking has received 13 consumer complaints since 2005 alleging that Boyajian Law Offices collected debt without a license. The complaints allege that the law firm tried to collect un-verified or time-barred debts and/or failed to provide consumers with evidence that they owed a debt.

The Attorney General’s Office and the Department of Banking are investigating the complaints.

Anyone with complaints against Boyajian Law Offices or JBC should contact the Attorney General’s Office at (860) 808-5270.