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1 STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: AGENCY FILE NO. L ALLIED FINANCIAL GROUP & ASSOCIATES, INC., d/b/a GREGORY ADAMS & ASSOCIATES and d/b/a ANDREW COHEN & ASSOCIATES; and JOSE FLORES, Respondents ~/ ASSURANCE OF VOLUNTARY COMPLIANCE FOR ALLIED FINANCIAL GROUP & ASSOCIATES, INC., d/b/a GREGORY ADAMS & ASSOCIATES and d/b/a ANDREW COHEN & ASSOCIATES; and JOSE FLORES Pursuant to the provisions of Chapter 501, Part II, Florida Statutes, the Office of the Attorney General, Department of Legal Affairs, State of Florida ("Attorney General") has investigated the business practices of ALLIED FINANCIAL GROUP & ASSOCIATES, INC., d/b/a GREGORY ADAMS & ASSOCIATES and d/b/a ANDREW COHEN & ASSOCIATES (hereinafter "Allied Financial"), and JOSE FLORES, and all related companies (hereinafter referred to collectively as the "Respondents"), in connection with alleged unfair and deceptive trade practices. -sf

2 The Respondents agree to enter into this Assurance of Voluntary Compliance ("AVC"), without any admission that they have violated the law, in order to resolve the Attorney General' s investigation of the Respondents, pursuant to Agency File No. L The Attorney General, by the signature of her Director of Consumer Protection affixed hereto, does hereby accept the instant AVC and in turn terminates the Attorney General's investigation as it concerns the Respondents by virtue of the authority vested in the Office of the Attorney General, pursuant to Section (6) of the Florida Statutes. I. DEFINITIONS For purposes of this A VC, "reasonable investigation" shall mean an investigation in which Allied Financial objectively evaluates and weights the relevant information and circumstances, including but not limited to, the reliability and credibility of the information's source, the accuracy and completeness of the information it has obtained from third parties, and the methods used to collect the debt information. II. STIPULATIONS IT IS AGREED that this A VC does not constitute an admission of any kind and, specifically, Respondents deny any and all allegations of wrongdoing. This AVC does not constitute a finding of law or fact by any court or agency that Respondents have engaged in any act or practice declared unlawful by any laws, rules or regulations of the State of Florida, and neither party shall make any statement to the contrary. Respondents are prepared to enter into this AVC solely for the purpose of resolution and cooperation, and the parties, being in agreement, do accept this A VC by virtue of the authority vested in the Department by said 3f"

3 statute. The Department and Respondents hereby agree and stipulate to the following: 2.1 Respondents and/or their related companies engage in debt collection from thousands of consumers both in Florida and around the country. 2.2 Beginning in or about March 2013, the Department became aware of several complaints from conswners who alleged, among other complaints, that they were contacted about a debt in error, they were harassed and threatened over the phone, they were repeatedly contacted after informing Allied Financial that the debt was not theirs, and that Allied Financial threatened to sue and/or ruin the consumers' credit when the debt was not theirs. Many of the consumer complaints alleged that Allied Financial's employees refused to provide documentation when requested by the consumer to verify the existence of the debt, and became verbally belligerent and abusive during the call. In many instances, the consumers alleged that Allied Financial's employees, directly and indirectly, represented themselves as working for a law firm that was preparing to file and serve a law suit against the consumer. 2.3 The Department's investigation focused primarily, inter alia, on whether Respondents engaged in violations of 15 U.S.C.A 1692 (Fair Debt Collections Practices Act, "FDCPA"), Florida Statutes (2013), Sections (Florida Consumer Collection Practices Act, "FCCPA"), and Florida Statutes (2013), Sections (Florida Deceptive and Unfair Trade Practices Act, "FDUTPA"). 2.4 Respondents make no admission that they or their related companies engaged in any wrongdoing or committed any violation of Florida Statute (2013), Ch. 501, Part II, 3 {--

4 FDUTPA; the FCCPA or the FDCP A. This A VC contains neither fmdings of fact nor conclusions of law. m. COMPLIANCE 3.1 The Department has not approved any of Respondents' past, current or proposed business practices, other than those specifically mentioned in this AVC, and therefore no portion of this AVC shall be construed as such an approval. 3.2 Respondents agree and acknowledge that they and their representatives, agents, employees, or any other person who acts under, by, through, or on behalf of Respondents, directly or indirectly, or through any corporate or other device, are on notice and shall comply with Chapter 501, Part II, Florida Statutes (2013), the Florida Deceptive and Unfair Trade Practices Act; Florida Statutes (2013), Sections (Florida Consumer Collection Practices Act), and 15 U.S.C.A 1692 (Fair Debt Collections Practices Act). 3.3 IT IS HEREBY AGREED by the parties that Respondents: I. Shall be permanently restrained and enjoined from the following: a) Making any material misrepresentation expressly or by implication, to collect or to attempt to collect a debt or to obtain information concerning a consumer. b) Making any material misrepresentation, expressly or by implication, that a consumer owes a debt or as to the amount of a debt, unless, at the time of making the representation, Respondents have a reasonable basis for making such representation. Provided that, in those instances in which the "3 'f-

5 Respondents are required to conduct a reasonable investigation, per this A VC, they have done so and have reasonably concluded that the information on which the Respondent relies to collect or attempt to collect the debt is accurate and complete, the conclusions of that investigation shall constitute a reasonable basis. c) Communicating more than once with a person other than the consumer for the purpose of obtaining location information about the consumer without the person's consent or a reasonable belief that the earlier response ofthe person was erroneous or incomplete and that the person now has correct or complete location information, in violation of 804(3) of the FDCPA, 15 U.S.C 1692b(3). d) Engaging in conduct which IS meant to harass, oppress, or abuse, including but not limited to: 1. using obscene, profane or abusive language; and u. causing a telephone to ring, or engaging a person in telephone conversation, repeatedly or continuously to annoy, abuse or harass the person at the called number e) Using false, deceptive or misleading representations or means in connection with the collection of a debt, including, but not limited to, representing or implying that 1) any action will be taken, unless at the time of the representation, such action is lawful and the Respondents or the '1 r

6 creditor intends to actually take such action; or 2) that any action may be taken when Respondents cannot show that, at the time of the representation, there is a reasonable likelihood that such action will be taken. f) Selling the debt or providing it to any other corporate entity, other than the client from which the Respondents obtained the debt, if Respondents are unable to substantiate that the consumer owes the debt and/or Respondents have decided to permanently terminate collection efforts. g) Using a communication which simulates in any manner legal or judicial process, or which gives the appearance of being authorized, issued or approved by a government, governmental agency, or attorney at law, when it is not. h) Communicating with a debtor (orally or otherwise) in such a manner as to give the false impression or appearance that such person is or is associated with an attorney. i) Using a false or fictitious name, or refusing to provide adequate identification to the person called concerning the true identity ofthe caller, his employer or other entity whom Respondent represents when requested to do so by the person called; :S F

7 j) Using any business, company, or organization name other than the tme name of the Respondents' debt collector's business, company, or organization. k) Engage in any other act or practice that would violate U.S.C.A (FDCPA), Florida Statutes (2013) Sections (FCCPA), and Florida Statutes (2013) Sections ( FDUTPA). II. Upon the execution ofthis AVC shall: a) Have a duty to conduct a reasonable investigation in the following circumstances: 1. When a consumer, at any time, questions, disputes, or challenges the accuracy or completeness of the information on which the Respondents are relying to make any representation that the consumer owes a debt or as to the amount of the debt; OR u. When a consumer, acting reasonably would consider the information on which the Respondents are relying to make any representation regarding either the existence or the amount of a debt to be implausible, facially unreliable, or missing essential information. '3 F

8 b) Provide responsive information or pose reasonable question(s) to the consumer, in a manner that complies with the law, in an effort to resolve disputes raised by the consumer. c) Make no further attempt to collect the debt or report it to a consumer reporting agency, after the consumer continues to dispute, challenge or question the debt, until the Respondents have completed an investigation and has reasonably concluded that the debt information is accurate and complete. III. Respondents have provided the Department with information regarding its resolution of complaints previously forwarded to Respondents. Respondents have represented that they have resolved all previous consumer complaints received from the Department dealing with the allegations in this AVC. As part of this AVC, Respondents shall provide a notarized affidavit and spreadsheet along with this AVC on behalf of Respondents, containing proof that Respondents have resolved all the complaints received from the Department since January 1, 2013, which will be attached to this AVC as Exhibits A. IV. STIPULATED PAYMENT 4.1 The parties agree Respondents shall pay the sum of $2, (TWO THOUSAND FIVE HUNDRED DOLLARS AND ZERO CENTS) to Seniors vs. Crime as senior citizens are often affected by unlawful debt collection practices. The Respondents have 3 r

9 submitted sworn financial affidavits and documentation which are represented to be true and correct and which indicate an inability to pay more than the amount set forth in this paragraph. This payment is in satisfaction of financial liabilities hereunder. Respondents also made several voluntary changes to their business practices when the investigation was initiated, which has reduced revenues from debt-collection activities, and the business continues to wind down. 4.2 The Department reserves the right to seek Chapter 501 civil penalties, restitution and/or attorneys fees and costs in the event the Respondents materially violate any provision of this AVC. Payment hereunder shall be made by cashier's check or other certified funds, made payable to Seniors vs. Crime. The payment shall be submitted simultaneously with the submission of a partially executed copy of this A VC. The original A VC, bearing the notarized signatures of Respondents and the above-described payment, will be delivered to the attention of Howard S. Dargan, Assistant Attorney General, Office of Attorney General, Consumer Protection Division, 1515 North Flagler Drive, Suite 900, West Palm Beach, Florida Complaints that the Department receives regarding Respondents after entry of this AVC may be sent directly to Respondents "Customer Service Department" which will maintain a dedicated specific individual, known as the Customer Service Manager, devoted to resolve complaints. These complaints sent by the Department will be answered by Respondents within seventy-two (72) business hours and the resolution of each of these complaints shall be communicated to the Department, in writing. Respondent will maintain adequate customer service personnel to examine, address and resolve all consumer complaints. Complainants may call Respondents during normal business hours to lodge any and all complaints, and speak to a ':5 r

10 customer service representative. 4.4 Upon receipt of the partially executed AVC and accompanying check, HowardS. Dargan will sign the A VC and then forward the A VC to the Consumer Protection Division South Florida Bureau Chief, together with the aforementioned funds. The Conswner Protection Division South Florida Bureau Chief has the final authority to approve or disapprove the entry of the A VC. Should the Consumer Protection Division South Florida Bureau Chief decline to authorize and execute this A VC, then the Stipulate Payment would be promptly returned. 4.5 Respondents' interest in funds paid in conjunction with this AVC shall fully and completely divest when the A VC is fully executed by all parties. Notwithstanding any other provision of this AVC, no portion of the funds paid shall in any event be returned to Respondents provided that the AVC has been fully executed. V. EFFECTIVE DATE The Effective Date of this AVC is the date on which the AVC is fully executed by the parties. This will be the date that the A VC is signed by the Consumer Protection Division South Florida Bureau Chief. The receipt of or deposit by the Department of any monies pursuant to this A VC does not constitute acceptance by said Department, and monies received will be returned if this A VC is not accepted. Upon entry and full execution of this A VC and upon full payment of the Funds, the Attorney General agrees to close this investigation into the activities of Respondents and Respondents shall be released from liability regarding the allegations referenced in this AVC dating prior to the effective date of this AVC. -:5' F

11 VI. AVAILABILITY OF RECORDS Respondents shall retain for a minimwn of two (2) years and maintain and make available to the Department, upon its written request, all books, records, telephone logs, recordings, scripts, website archives and other documents which reflect the implementation of the terms of this A VC and compliance with its terms. Any such records requested by the State shall be made available for inspection within seven (7) business days after receipt of such request. Respondents shall honor any request from the State to make such records available without further legal process. VII. FUTURE VIOLATIONS 7.1 Notwithstanding any other provision of this AVC, the parties further recognize that future violations of this AVC or of Florida Statutes (2013), Ch. 501, Part II, may subject Respondents or its officers, directors and employees to any and all civil penalties and sanctions provided by law. 7.2 IT IS FURTHER AGREED by the parties that any future violations ofthis AVC which occur are by statute prima facie evidence of a violation of Florida Statutes (20 13 ), Ch. 501, Part II, and will subject Respondents to any and all civil penalties and sanctions provided by law, attorneys' fees and costs. 7.3 IT IS HEREBY AGREED by the parties that Respondents shall be responsible for making the substantive terms and conditions of this A VC known to the officers, directors, partners, employees, agents, representatives, licensees, franchisees, independent contractors, successors and assigns, engaged in Respondents' business, projects, and activities that are related 3 T-

12 to the terms and conditions of this AVC. VIII. MISCELLANEOUS PROVISIONS 8.1 Nothing herein shall be construed as a waiver of any private rights, causes of action, or remedies of any private person, business, corporation, government or legal entity against the Respondents' directors or employees. Similarly, nothing contained herein shall waive the right of the Respondents to assert any lawful defenses in response to a claim of a consumer. 8.2 The parties agree that restitution is not appropriate in this case, as the harm to consumers was primarily in the nature of a nuisance or harassment, rather than a monetary loss. The Respondents have also made several voluntary changes to their business practices and procedures, and have voluntarily terminated several employees whose conduct was the subject of numerous consumer complaints. Currently, Allied Financial struggles to remain a viable business concern. Complaints filed against Respondents have been considered and it appears most arose from the use of an automated dialing system that was not being properly updated to remove contact information concerning individuals who were unrelated to the debtor(s) being sought. Respondents' additional procedures to update and remove unrelated contact information from their dialing systems should eliminate these unnecessary and repetitive calls, thereby rectifying this issue and mitigating against a further fmancial sanction. 8.3 The Attorney General reserves the right to seek Chapter 501 penalties for any future violation(s) of Chapter 501 Part II Florida Statutes. In addition, in the event that the Respondents fail to comply with the terms and conditions of this A VC, their actions by statute -:! r

13 are prima facie evidence of a violation of Chapter 501, Part II, Florida Statutes, and they will be subject to any and all civil penalties and sanctions authorized by law, including, but not limited to, a civil penalty of up to $15,000 per violation, attorney's fees and costs, and any other available relief, as permitted by law. 8.4 The parties jointly participated in the negotiation of the terms articulated in this AVC. No provision of this AVC shall be construed for or against either party on the ground that one party or another was more heavily involved in the preparation. IN WI1NESS WHEREOF, Respondents have caused this AVC to be executed by Jose Flores, Individually and as President/CEO of Allied Financial Group & Associates, Inc.,, as a true act and deed, in the County and State listed below, as of the date affixed thereon. Agreed to and Signed this, day of s.. v-v":--"-/, BY MY SIGNATURE I, Jose Flores, hereby affirm that I am acting in my capacity and within my authority as President and CEO of Allied Financial Group & Associates, Inc., and in my individual capacity, and that by my signature I am binding myself and the Respondent Allied Finan: G~ ; ciates, Inc., to the terms and conditions of this A VC. Jose FlorisYindividually and as President and CEO of Allied Financial Group & Associates, Inc. STATE OF FLORIDA ) COUNTYOFBROWARD ) BEFORE ME, a notary public of the State of Florida, personally appeared Jose Flores, -:r F

14 individually and as President/CEO of Allied Financial Group & Associates, Inc., who swore under oath that he has the authority to bind Respondents to this AVC and who is either (Check One) known to me or who / produced the following identification: Flon clqq dnvu~ Lu:.u"V -::r r

15 .. ACCEPTANCE BY ATTORNEY GENERAL'S OFFICE Signed this.flt day of h-t r'<... r z, /15t Office of the Atto~y General HowardS. Dargan Assistant Attorney General Florida Bar North Flagler Drive, Suite 900 West Palm Beach, Florida, (FAX) l, Accepted this -'~_day of.fet:,o. r ~- 'r-7--"--- -= ~ South Florida Bureau Chief Department of Legal Affairs OFFICE OF THE ATTORNEY GENERAL Consumer Protection Division 1515 N. Flagler Drive, Suite 900 West Palm Beach, FL =s ~