TekCollect.com Reviews – Legit or Scam?

 

TekCollectTek Collect is a collections agency that employs at home workers to collect debts, rather than establishing a brick and mortar call center.  This is a common type of telecommuting position, as any job that needs only a phone and a computer to complete the work is easy to do from home.

Tek Collect appears to be a third party collection agency, which means that they enter into contracts with companies to collect their debt for them for a fee.

Tek Collect has often been seen advertising on CareerBuilder, Monster, and other employment websites, as well as has placed ads in various metropolitan newspapers.  Their ads ask for

“highly motivated Sales Professionals to Fast Track into Sales Management. First year earnings range from $75k to $150k. Second year earnings well into six figures. Senior Sales Managers enjoy mid to upper six-figure income.”

So is TekCollect a Scam?

Unfortunately, the hiring processes of Tek Collect definitely raise some serious warning flags.  For example, their ads imply that they are searching for employees, when the truth is that Tek Collect only hires independent contractors.  Independent contractors receive no benefits from their employment, and no taxes are taken out of their paychecks, as well as no payments into Social Security or retirement plans.

But this doesn’t mean that you are exempt from taxes – if you take a job as an independent contractor, you need to save your own money in order to pay your taxes out of pocket at the end of the year, because your company still reports your earnings to the IRS.

Another warning flag is that Tek Collect requires people to pay $350 for their training program, with the promise that the money will be refunded to them once they reach a particular level of closed accounts.  Unfortunately, Tek Collect contractors claim that, despite what you are led to believe when you are hired, it is almost impossible to reach that level of closed accounts and therefore your money is very rarely refunded.

Now, hiring contractors instead of employees is not a scam. Many companies do it. And requiring people to be trained or even to invest money in supplies before being hired for a legitimate telecommuting position is not a scam either. However, pretending that you don’t do these things in convince employees to work for you is a serious problem.

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Customer Responses, Reviews, or Complaints


Average Rating for " Tek Collect " is 1.93 out of 5 based on 14 reviews.

  • Lisa Damato says:

    April 2nd, 2014 at 7:27 pm

    Tek collect is stating I owe them a fee for an anathesioligist when in reality the insurance company Liberty Mutual should be paying the fee. This is ridiculous to think i owe for anathesia when the company actually paid for the surgery and everything else why am I being charged and on my credit report? no clue call the insurance co.

    REPLY
  • Rating
      
    Frustrated says:

    March 6th, 2014 at 5:20 pm

    Geez, if there was a way to give this company a 0 rating I surely would. I called this company several times only to be hung up on during my first three attempts. On the fourth call the line was answered and held for almost a minute and the representative only spoke after I said “hello”. She identified the company as “Business Office” and I had to ask several times if she indeed was with Tek Collect to be sure that I had called the correct place. She then asked me for my “contact #” in order to locate my account. I provided my phone # only for her to again ask me for my contact #. After playing this game for a few cycles I was able to determine that she actually needed the “personal and confidential #”. After providing this she immediately stated that they were unable to set up pmt arrangements. At this point I advised that I was calling to make the pmt in full and she cut me off asking when. I was over the call at this point and advised that I would remit the pmt to the business I owed the debt to. Only at this time did she seem even slightly concerned with her customer service. Too little, too late. Based on the previous reviews this is a normal operating fashion for Tek Collect. Horrible business practices! I plan to never have to deal with them in the future and plan to advise the business that employs them accordingly.

    REPLY
  • Rating
      
    pizzaria says:

    February 4th, 2014 at 3:33 pm

    Owner/President of Cap360/Tek Collect convicted felon

    IN THE MATTER OF:

    TEK-COLLECT INCORPORATED
    d/b/a TEKCOLLECT
    NMLS #1012712

    (“Respondent”)

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    TEMPORARY ORDER TO
    CEASE AND DESIST

    ORDER OF SUMMARY SUSPENSION

    NOTICE OF INTENT TO REVOKE
    CONSUMER COLLECTION AGENCY
    LICENSE

    NOTICE OF INTENT TO ISSUE
    ORDER TO CEASE AND DESIST

    NOTICE OF INTENT TO IMPOSE
    CIVIL PENALTY

    AND

    NOTICE OF RIGHT TO HEARING

    I. LEGAL AUTHORITY AND JURISDICTION

    The Banking Commissioner (“Commissioner”) is charged with the administration of Part XII of Chapter 669, Sections 36a-800 to 36a-810, inclusive, of the Connecticut General Statutes, “Consumer Collection Agencies”, and the regulations promulgated thereunder (Sections 36a-809-6 to 36a-809-17, inclusive, of the Regulations of Connecticut State Agencies) (“Regulations”).

    Pursuant to the authority granted by Section 36a-17(a) of the Connecticut General Statutes, the Commissioner, through the Consumer Credit Division (“Division”) of the Department of Banking, has conducted an examination of Respondent to determine if it has violated, is violating or is about to violate the provisions of the Connecticut General Statutes or Regulations within the jurisdiction of the Commissioner.

    Section 36a-17(a) of the Connecticut General Statutes provides, in pertinent part, that:

    The commissioner, in the commissioner’s discretion, may . . . (1) make such public or private investigations or examinations within or outside this state, concerning any person subject to the jurisdiction of the commissioner, as the commissioner deems necessary to carry out the duties of the commissioner . . . .

    Subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes provides, in pertinent part, that:

    (a) The commissioner may . . . revoke . . . any license issued by the commissioner under any provision of the general statutes by sending a notice to the licensee by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the licensee on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes, [or] regulations . . . involved; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that the licensee may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. If the commissioner finds that public health, safety or welfare imperatively requires emergency action, and incorporates a finding to that effect in the notice, the commissioner may order summary suspension of a license in accordance with subsection (c) of section 4-182 and require the licensee to take or refrain from taking such action as in the opinion of the commissioner will effectuate the purposes of this section, pending proceedings for . . . revocation . . . .

    (b) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless the licensee fails to appear at the hearing. After the hearing, the commissioner shall . . . revoke . . . the license for any reason set forth in the applicable licensing provisions of the general statutes if the commissioner finds sufficient grounds exist for such . . . revocation . . . . If the licensee does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall . . . revoke . . . the license. No such license shall be . . . revoked except in accordance with the provisions of chapter 54.

    Section 36a-52 of the Connecticut General Statutes provides, in pertinent part, that:

    (a) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of the general statutes within the jurisdiction of the commissioner, or any regulation . . . adopted . . . thereunder, the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt, or seven days after mailing or sending. Any such notice shall include: (1) A statement of the time, place, and nature of the hearing; (2) a statement of the legal authority and jurisdiction under which the hearing is to be held; (3) a reference to the particular sections of the general statutes [or] regulations . . . alleged to have been violated; (4) a short and plain statement of the matters asserted; and (5) a statement indicating that such person may file a written request for a hearing on the matters asserted within fourteen days of receipt of the notice. If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice, unless the person fails to appear at the hearing. After the hearing, the commissioner shall determine whether an order to cease and desist should be issued against the person named in the notice. If the person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner shall issue an order to cease and desist against the person. No such order shall be issued except in accordance with the provisions of chapter 54.

    (b) If the commissioner finds that the public welfare requires immediate action, the commissioner may incorporate a finding to that effect in the notice sent in accordance with subsection (a) of this section and issue a temporary order requiring the person to cease and desist from the activity which constitutes such alleged violation and to take or refrain from taking such action as in the opinion of the commissioner will effectuate the purposes of this section. Such temporary order shall become effective on receipt and, unless set aside or modified by a court, shall remain in effect until the effective date of a permanent order or dismissal of the matters asserted in the notice.

    Section 36a-50(a) of the Connecticut General Statutes provides, in pertinent part, that:

    (1) Whenever the commissioner finds as the result of an investigation that any person has violated any provision of the general statutes within the jurisdiction of the commissioner, or any regulation . . . adopted . . . thereunder, the commissioner may send a notice to such person by registered or certified mail, return receipt requested, or by any express delivery carrier that provides a dated delivery receipt. The notice shall be deemed received by the person on the earlier of the date of actual receipt or seven days after mailing or sending. Any such notice shall include: (A) A statement of the time, place, and nature of the hearing; (B) a statement of the legal authority and jurisdiction under which the hearing is to be held; (C) a reference to the particular sections of the general statutes, [or] regulations . . . alleged to have been violated; (D) a short and plain statement of the matters asserted; (E) the maximum penalty that may be imposed for such violation; and (F) a statement indicating that such person may file a written request for a hearing on the matters asserted not later than fourteen days after receipt of the notice.

    (2) If a hearing is requested within the time specified in the notice, the commissioner shall hold a hearing upon the matters asserted in the notice unless such person fails to appear at the hearing. After the hearing, if the commissioner finds that the person has violated any such provision, [or] regulation, . . . the commissioner may, in the commissioner’s discretion and in addition to any other remedy authorized by law, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person. If such person does not request a hearing within the time specified in the notice or fails to appear at the hearing, the commissioner may, as the facts require, order that a civil penalty not exceeding one hundred thousand dollars per violation be imposed upon such person.

    (3) Each action undertaken by the commissioner under this subsection shall be in accordance with the provisions of chapter 54. . . .

    Section 4-182(c) of the Connecticut General Statutes provides, in pertinent part, that:

    If the agency finds that public health, safety or welfare imperatively requires emergency action, and incorporates a finding to that effect in its order, summary suspension of a license may be ordered pending proceedings for revocation or other action. These proceedings shall be promptly instituted and determined.

    II. MATTERS ASSERTED

    1. Respondent is an Ohio corporation with its main office at 871 Park Street, Columbus, Ohio. Respondent currently holds a license to act as a consumer collection agency in this state (No. 20687).
    2. By letter dated May 21, 2012, the Division commenced an examination of Respondent. Pursuant to such examination, the Division requested various records from Respondent, including completion of a “Consumer Collection Agency Uniform Manager’s Questionnaire” (“Questionnaire”), policies and procedures used by Respondent in collections, and bank statements of client fund accounts.
    3. Respondent is wholly-owned by the Thomas D. Schultz Trust (“TDS Trust”). The TDS Trust is an irrevocable trust created on October 26, 2001 by Thomas D. Schultz (“TDS”), Grantor for the benefit of Nicole R. Schultz, Trustee. At all relevant times hereto, Nicole R. Schultz has been the wife of TDS and President of Respondent.
    4. TDS is a convicted felon. By Judgment dated October 8, 2002, which was subsequently amended on February 10, 2003, in the case of United States of America v. Thomas Daniel Schultz, United States District Court, Southern District of Ohio, TDS pled guilty to three felonies of the United States: (1) conspiracy to defraud the United States of America and the Internal Revenue Service of the Department of Treasury, in violation of 18 USC Section 371; (2) failing to disclose a foreign bank account, in violation of 31 USC Sections 5314 and 5322(b); and (3) obstruction of justice, in violation of 18 USC Section 1503.
    5. On Respondent’s Renewal of Consumer Collection Agency License – Main Office application received by the Division on August 26, 2011 (“Application”), the only control person listed is Nicole Schultz. The instructions to the Application explain the term control person as, “[i]n the case of a corporation, association or trust, list the directors, principal officers, and authorized agent. . . . The intent is to capture the company’s leadership and not rely solely on the title of the individual”. However, during the examination, Respondent provided the following list of officers, principals, partners, owners, directors and 10% or greater stockholders: TDS Trust, Owner; Nicole Schultz, President; Ron Douglas, Vice President; Chet Groff, Chief Operating Officer, and Steve Morrison, Chief Financial Officer.
    6. Also on the Application, Respondent answered “No” to Question 6(a) which asked, “[h]as the applicant . . . or any officer, director, trustee, principal employee, or shareholder owning ten percent or more of outstanding stock of the applicant (if the applicant is a corporation): (a) ever been convicted of or pled guilty or nolo contendere (“no contest”) in a domestic, foreign, or military court to any felony?”
    7. Contrary to such disclosures, from at least March to October 2011, TDS was an officer and control person of Respondent. The examination revealed that TDS exercised control of Respondent’s nationwide sales operations as its “National Sales Manager” and was listed as such under the heading “Corporate Officers” in the collections manual used by Respondent’s staff, the “TekCollect Agent Guide and Workbook”.
    8. When further questioned by examiners on TDS’ role with the company, on November 6, 2012, Respondent’s Chief Operating Officer stated, “Thomas Schultz does not have a position with TekCollect Inc. . . . Mr. Schultz is not and has never been an officer or director of TekCollect Inc. At one time, he was an employee of TekCollect Inc. but has resigned that position”.
    9. The examination also revealed that Respondent utilized three different trust accounts for Connecticut debtor monies and commingled such monies with operational expenses. From at least January to April 2012, several outgoing transfers were made from at least one of these trust accounts for commissions to a sales and marketing affiliate owned and managed by TDS, payments to settle a previously issued judgment against an affiliate, and miscellaneous other expenses, including payments to a draw account of TDS.
    10. On Respondent’s Application, in response to Question 6(g) which asked “[h]as the applicant . . . ever been the subject of proceedings in . . . consumer-initiated litigation or arbitration filed in connection with a financial services-related business . . . ?”, Respondent answered “No”.
    11. Public records indicate that Respondent has been the subject of numerous lawsuits since August 26, 2011, alleging violations of the Fair Debt Collection Practices Act, including Orrick v. Tek-Collect, Inc., 1:12-cv-00464, filed February 23, 2012, in the United States District Court for the District of Colorado; Haarsma v. Tek-Collect Incorporated and Hamilton, 1:11-cv-01041, filed September 28, 2011, in the United States District Court, Western District of Michigan, Southern Division; and Velez v. Tek-Collect Incorporated and Nicole Schultz, 7:11-cv-00188, filed September 7, 2011, in the United States District Court, Eastern District of North Carolina, Southern Division.
    12. Respondent failed to notify the Division of the change in information provided in its Application and during the examination, failed to inform the Division of such litigation initiated against Respondent and its President. On January 28, 2013, Respondent’s Chief Operating Officer, in response to Question 19(a) of the Questionnaire, which asked, “[h]as the institution or any officer, principal, partner, owner, director or employee been a defendant or been indicted in any criminal or civil litigation initiated during the past three (3) years?”, Respondent answered “No”.

    III. STATUTORY BASIS FOR REVOCATION OF CONSUMER
    COLLECTION AGENCY LICENSE, ORDER TO CEASE AND DESIST
    AND IMPOSITION OF CIVIL PENALTY

    Section 36a-53a of the Connecticut General Statutes provides:

    No person shall make or cause to be made orally or in any document filed with the commissioner or in any proceeding, investigation or examination under this title, any statement which is, at the time and in the light of the circumstances under which it is made, false or misleading in any material respect.

    Section 36a-801(b)(1) of the Connecticut General Statutes provides, in pertinent part, that:

    Any person desiring to act within this state as a consumer collection agency shall make a written application to the commissioner for such license in such form as the commissioner prescribes. . . . Each applicant shall furnish satisfactory evidence to the commissioner that the applicant is a person of good moral character and is financially responsible. If the commissioner is satisfied that such applicant is in all respects properly qualified and trustworthy and that the granting of such license is not against the public interest, the commissioner may issue to such applicant a license, in such form as the commissioner may adopt, to act within this state as a consumer collection agency. . . . To further the enforcement of this section and to determine the eligibility of any person holding a license, the commissioner may, as often as the commissioner deems necessary, examine the licensee’s books and records, and may, at any time, require the licensee to submit such a financial statement for the examination of the commissioner, so that the commissioner may determine whether the licensee is financially responsible to carry on a consumer collection agency business within the intents and purposes of sections 36a-800 to 36a-810, inclusive. . . . The . . . licensee shall notify the commissioner, in writing, of any change in the information provided in its initial application for a license or most recent renewal application for such license, as applicable, not later than ten business days after the occurrence of the event that results in such information becoming inaccurate. . . .

    Section 36a-804 of the Connecticut General Statute provides, in pertinent part, that:

    (a) The commissioner may . . . revoke . . . any license or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for a license under sections 36a-800 to 36a-810, inclusive, or if the commissioner finds that the licensee or any proprietor, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has done any of the following: (1) Made any material misstatement in the application; (2) committed any fraud or misrepresentation or misappropriated funds; or (3) violated any of the provisions of sections 36a-800 to 36a-810, inclusive, or of any regulations adopted pursuant thereto, or any other law or regulation applicable to the conduct of its business.

    (b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-800 to 36a-810, inclusive, or any regulation adopted pursuant thereto, or the licensee or any proprietor, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has committed any fraud, made any misrepresentation or misappropriated funds, the commissioner may take action against such person or licensee in accordance with sections 36a-50 and 36a-52.

    Section 36a-805(a) of the Connecticut General Statutes provides, in pertinent part, that:

    No consumer collection agency shall: . . . (9) refuse or fail to account for and remit to its clients all money collected which is not in dispute within sixty days from the last day of the month in which said money is collected; . . . [or] (12) commingle money collected for a creditor, claimant or forwarder with its own funds or use any part of a creditor’s, claimant’s or forwarder’s money in the conduct of its business . . . .

    Section 36a-809-7(b) of the Regulations provides, in pertinent part, that:

    Each consumer collection agency shall deposit funds received from debtors in a separate account which shall not be commingled with funds of the consumer collection agency or used in the conduct of the consumer collection agency’s business. Such account shall not be used for any purpose other than (1) the deposit of funds received from debtors, (2) the payment of such funds to creditors, and (3) the payment of earned fees to the consumer collection agency.

    1. Respondent’s statements to the Division indicating that its officers and principal employees have never been convicted of or pled guilty to a felony, and Respondent’s statement to the Division indicating that Respondent has never been a defendant in civil litigation during the past three years, as more fully described in paragraphs 4, 6, 7, 9, 11 and 12 of the Matters Asserted, constitutes making in a document filed with the Commissioner or in an investigation or examination statements which are, at the time and in light of the circumstances under which it is made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes. Such conduct constitutes sufficient grounds for the Commissioner to revoke Respondent’s license to act as a consumer collection agency in this state pursuant to Section 36a-804(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.
    2. Respondent’s failure to notify the Commissioner of the change in information provided in its Application, as more fully described in paragraphs 5 and 10 through 12, inclusive, of the Matters Asserted, constitutes a violation of Section 36a-801(b)(1) of the Connecticut General Statutes. Such conduct constitutes sufficient grounds for the Commissioner to revoke Respondent’s license to act as a consumer collection agency in this state pursuant to Section 36a-804(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.
    3. Respondent’s statements to the Division that Nicole Schultz is Respondent’s only control person and that TDS has never been an officer or director of Respondent, as more fully described in paragraphs 5, 7 and 8 of the Matters Asserted, constitutes making in a document filed with the Commissioner or in an investigation or examination statements which are, at the time and in light of the circumstances under which it is made, false or misleading in a material respect, in violation of Section 36a-53a of the Connecticut General Statutes. Such conduct constitutes sufficient grounds for the Commissioner to revoke Respondent’s license to act as a consumer collection agency in this state pursuant to Section 36a-804(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.
    4. Respondent’s payment of monies from its Connecticut debtor trust accounts for sales commissions, payments to a draw account of TDS and settlement of a judgment, as more fully described in paragraph 9 of the Matters Asserted, constitute violations of Section 36a-805(a)(12) of the Connecticut General Statutes and Section 36a-809-7(b) of the Regulations. Such conduct constitutes sufficient grounds for the Commissioner to revoke Respondent’s license to act as a consumer collection agency in this state pursuant to Section 36a-804(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms the basis to issue an order to cease and desist pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes, and to impose a civil penalty pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes. Section 36a-50(a) of the Connecticut General Statutes authorizes the Commissioner to impose a civil penalty upon Respondent in an amount not to exceed One Hundred Thousand Dollars ($100,000) per violation.
    5. TDS’ felony conviction, as an officer or principal employee of Respondent, as more fully described in paragraphs 4 and 7 through 9, inclusive, of the Matters Asserted, is a basis for the Commissioner to deny an application for a consumer collection agency license pursuant to Section 36a-801(b)(1) of the Connecticut General Statutes, which constitutes sufficient grounds for the Commissioner to revoke Respondent’s consumer collection agency license pursuant to Section 36a-804(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes.

    IV. FINDINGS AND STATUTORY BASIS FOR TEMPORARY ORDER
    TO CEASE AND DESIST AND ORDER OF SUMMARY SUSPENSION

    The Commissioner finds that public safety and welfare imperatively require emergency action to summarily suspend Respondent’s license to act as a consumer collection agency in this state under Section 4-182(c) of the Connecticut General Statutes and finds that public welfare requires immediate action to issue a temporary order requiring Respondent to cease and desist from violating the laws and regulations cited herein, pursuant to Section 36a-52(b) of the Connecticut General Statutes, in that Respondent has commingled Connecticut debtor monies with operational expenses, made numerous statements to the Commissioner which were false or misleading in a material respect and concealed the significant role that TDS, a convicted felon, performs in Respondent’s operations, such that the continued operation of Respondent as a consumer collection agency in this state may adversely affect Connecticut residents.

    V. TEMPORARY ORDER TO CEASE AND DESIST, ORDER OF SUMMARY SUSPENSION,
    NOTICE OF INTENT TO REVOKE CONSUMER COLLECTION AGENCY
    LICENSE, NOTICE OF INTENT TO ISSUE ORDER TO CEASE
    AND DESIST, NOTICE OF INTENT TO IMPOSE CIVIL
    PENALTY AND NOTICE OF RIGHT TO HEARING

    WHEREAS, the Commissioner has reason to believe that Respondent has engaged in acts or conduct which constitutes sufficient grounds for the Commissioner to revoke Respondent’s license to act as a consumer collection agency in this state pursuant to Section 36a-804(a) and subsections (a) and (b) of Section 36a-51 of the Connecticut General Statutes, and forms a basis to issue an order to cease and desist against Respondent pursuant to Sections 36a-804(b) and 36a-52(a) of the Connecticut General Statutes and to impose a civil penalty upon Respondent pursuant to Sections 36a-804(b) and 36a-50(a) of the Connecticut General Statutes;

    AND WHEREAS, the Commissioner has made the findings required under Sections 36a-51(a), 4-182(c) and 36a-52(b) of the Connecticut General Statutes.

    THE COMMISSIONER THEREFORE ORDERS, pursuant to the authority granted in Section 36a-52(b) of the Connecticut General Statutes, that Tek-Collect Incorporated d/b/a TekCollect immediately CEASE AND DESIST from further violations of Sections 36a-53a, 36a-801(b)(1) and 36a-805(a)(12) of the Connecticut General Statutes and Section 36a-809-7(b) of the Regulations. This Temporary Order to Cease and Desist shall become effective upon receipt by Tek-Collect Incorporated d/b/a TekCollect and, unless set aside or modified by a court, shall remain in effect until the effective date of a permanent order or dismissal of the matters asserted in this Temporary Order to Cease and Desist.

    THE COMMISSIONER FURTHER ORDERS, pursuant to the authority granted in Sections 36a-51(a) and 36a-52(b) of the Connecticut General Statutes, that Tek-Collect Incorporated d/b/a TekCollect shall:

    1. Upon receipt of this Temporary Order to Cease and Desist, Tek-Collect Incorporated d/b/a TekCollect, and any and all officers, directors, trustees, principal employees, shareholders and agents acting on behalf of Tek-Collect Incorporated d/b/a TekCollect, shall immediately cease and desist from acting as a consumer collection agency in this state, provided that Tek-Collect Incorporated d/b/a TekCollect is permitted to perform the winding-down of its Connecticut consumer collection activities as provided herein;
    2. No later than fourteen (14) days after receipt of this Temporary Order to Cease and Desist, Tek-Collect Incorporated d/b/a TekCollect shall perform a detailed accounting of all Connecticut debtor accounts, including but not limited to, names and addresses of Connecticut debtors and the amount of funds and fees collected from each debtor, and provide copies of such detailed accounting to: (a) all clients that currently have Connecticut debtor accounts placed with Tek-Collect Incorporated d/b/a TekCollect (“CT Clients”); and (b) Carmine Costa, Director, Consumer Credit Division, Department of Banking, 260 Constitution Plaza, Hartford, Connecticut 06103-1800, or carmine.costa@ct.gov;
    3. Upon receipt of this Temporary Order to Cease and Desist, Tek-Collect Incorporated d/b/a TekCollect shall notify all CT Clients of the existence of this Order and that Tek-Collect Incorporated d/b/a TekCollect’s consumer collection agency license in Connecticut has been summarily suspended, pending proceedings for revocation. Tek-Collect Incorporated d/b/a TekCollect shall provide evidence of such notification to Carmine Costa, Director, Consumer Credit Division, no later than fourteen (14) days after receipt of this Temporary Order to Cease and Desist;
    4. Tek-Collect Incorporated d/b/a TekCollect shall immediately secure all records, files and documents relating to its consumer collection activity in Connecticut (collectively, “Records”). The Records shall be available to the Commissioner in their entirety upon request;
    5. Tek-Collect Incorporated d/b/a TekCollect shall immediately remit all monies held in trust for CT Clients and any future monies received relating to Connecticut debtor accounts to CT Clients. No later than fourteen (14) days after the effective date of this Temporary Order to Cease and Desist, Tek-Collect Incorporated d/b/a TekCollect shall submit evidence of compliance with this paragraph to Carmine Costa, Director, Consumer Credit Division, including but not limited to, receipts confirming the transmittal of funds, check number of payments issued and an accounting of amounts paid to each CT Client;
    6. Upon the effective date of this Temporary Order to Cease and Desist, Tek-Collect Incorporated d/b/a TekCollect shall not pay or declare any dividend, salary or bonus, nor otherwise authorize any other material distribution of Tek-Collect Incorporated d/b/a TekCollect’s assets to any officer, director or owner of such Tek-Collect Incorporated d/b/a TekCollect without the prior written approval of the Commissioner. Tek-Collect Incorporated d/b/a TekCollect shall implement or revise its practices and procedures, as necessary, to ensure that each Tek-Collect Incorporated d/b/a TekCollect’s financial books and records are accurately maintained, in a manner illustrating compliance with the provisions of this paragraph, and available for review by the Division’s examiners upon request; and
    7. Tek-Collect Incorporated d/b/a TekCollect shall immediately place any unearned fees relating to consumer collection activity on Connecticut debtor accounts in a separate escrow account at a federally-insured bank, Connecticut credit union, federal credit union or out of state bank that maintains in this state a branch as defined in Section 36a-410 of the Connecticut General Statutes, and notify Carmine Costa, Director, Consumer Credit Division of the account number and location of such account.

    THE COMMISSIONER FURTHER ORDERS, pursuant to the authority granted in of Sections 36a-804(a), 36a-51(a) and 4-182(c) of the Connecticut General Statutes, that the license of Tek-Collect Incorporated d/b/a TekCollect to act as a consumer collection agency in this state be and is hereby SUMMARILY SUSPENDED pending proceedings for revocation.

    FURTHER, notice is hereby given to Respondent that the Commissioner intends to REVOKE Respondent’s license to act as a consumer collection agency in this state, issue an order requiring Respondent to CEASE AND DESIST from violating Sections 36a-53a, 36a-801(b)(1) and 36a-805(a)(12) of the Connecticut General Statutes and Section 36a-809-7(b) of the Regulations, and impose a CIVIL PENALTY upon Respondent as set forth herein, subject to Respondent’s right to a hearing on the allegations set forth above.

    A hearing will be granted to Respondent if a written request for a hearing is received by the Department of Banking, Consumer Credit Division, 260 Constitution Plaza, Hartford, Connecticut 06103-1800 within fourteen (14) days following Respondent’s receipt of this Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing as set forth in Sections 36a-52(a) and 36a-50(a) and subsection (a) and (b) of Section 36a-51 of the Connecticut General Statutes. This Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing shall be deemed received on the earlier of the date of actual receipt, or seven days after mailing or sending. The enclosed Appearance and Request for Hearing Form must be completed and mailed to the above address. If Respondent will not be represented by an attorney at the hearing, please complete the Appearance and Request for Hearing Form as “pro se”. Once a written request for a hearing is received, the Commissioner may issue a notification of hearing and designation of hearing officer that acknowledges receipt of a request for a hearing, designates a presiding officer and sets the date of the hearing in accordance with Section 4-177 of the Connecticut General Statutes and Section 36a-1-21 of the Regulations of Connecticut State Agencies. If a hearing is requested, the hearing will be held on July 10, 2013, at 10 a.m., at the Department of Banking, 260 Constitution Plaza, Hartford, Connecticut.

    The hearing will be held in accordance with the provisions of Chapter 54 of the Connecticut General Statutes, unless Respondent fails to appear at the requested hearing. At such hearing, Respondent will have the right to appear and present evidence, rebuttal evidence and argument on all issues of fact and law to be considered by the Commissioner.

    If Respondent does not request a hearing within the time prescribed, the Commissioner will issue an order revoking Respondent’s license to act as a consumer collection agency in this state, issue an order that Respondent cease and desist from violating Sections 36a-53a, 36a-801(b)(1) and 36a-805(a)(12) of the Connecticut General Statutes and Section 36a-809-7(b) of the Regulations, and may order a civil penalty not to exceed One Hundred Thousand Dollars ($100,000) per violation be imposed upon Respondent.

    Dated at Hartford, Connecticut
    this 1st day of May 2013. ________/s/_________
    Howard F. Pitkin
    Banking Commissioner

    CERTIFICATION

    I hereby certify that on this 1st day of May 2013, the foregoing Temporary Order to Cease and Desist, Order of Summary Suspension, Notice of Intent to Revoke Consumer Collection Agency License, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing was sent by certified mail, return receipt requested, to Tek-Collect Incorporated d/b/a TekCollect, Attention: Nicole Schultz, President, 871 Park Street, Columbus, Ohio 43215, certified mail no. 70110470000225729717; and Tek-Collect Incorporated d/b/a TekCollect, Attention: Nicole Schultz, President, P.O. Box 1269, Columbus, Ohio 43216, certified mail no. 70121010000173171840.

    ________/s/_________
    Stacey L. Serrano
    Prosecuting Attorney

    Administrative Orders and Settlements

    Printable Version

    260 Constitution Plaza, Hartford, CT 06103-1800 / Phone: 800-831-7225
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  • Rating
      
    Business Owner says:

    February 3rd, 2014 at 4:32 pm

    Trust me they sit on there asses after the primary phase and collect the 30% fee that they did nothing to recieve. I started doing my own collections after tekcollect collected only 1 percent of my total past due accounts. By that time the accounts slipped into the second phase and what ever money I received from my clients because of my own hard work I had to pay tekcollect 30%….. PLEASE DON’T BE FOOLED BY THEM … LIKE I WAS!!

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    Thomas Dave says:

    January 6th, 2014 at 8:48 am

    If you look closely at what is right in front of you, you will find a company full of criminials. The biggest criminal is at the top the owner and slavemaster. Tom Schultz makes other people do what he can’t do because he has no talent or sales ability himself.

    Look and read;
    http://www.ct.gov/dob/cwp/view.asp?a=2246&q=523980

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    Business Owner says:
    February 3rd, 2014 at 4:56 pm

    Amen!!

  • Betsy says:

    November 7th, 2013 at 10:01 am

    Same thing happened to me, is it legal? Can’t be.

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    Shadow says:

    November 7th, 2013 at 9:06 am

    This Company uses a presentation booklet on sales calls. In the booklet, they have a money back guarantee drawn on Chase Bank. They teach you how to close sales using this guarantee. One of my prospective Clients called Chase Bank in Columbus Ohio and they new nothing about it.They were also told that Tek Collect is no longer doing business with them .This can’t be legal.

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    annoy says:

    October 23rd, 2013 at 4:11 pm

    We use Tek-Collect to collect our past due accounts and now I wish we didn’t have a contract with them. So many things wrong with this company I don’t know where to begin. First, they have 2 phases of collections the first phase they dont charge a percent of the payment that was receive they only have a flat rate charge/set up fee. The second phase they charge a percentage of I believe 30% regardless if they collect it or you collect it. They are supossed to get aproval when transfering from one phase to another … but they don’t!! They make changes on there end like the amount i reported as pastdue and the total amount of the they loan. The amount they can collect fees on is only from the amount I report as past and not the total amount that the account owes us. They changed the past due amount that was only so much to the total amount of the loan which was not past due. So now we have to pay 30% on over 15,000.00 when we only reported to them to collect on a little over $1,000. WTH?? And they wont even change or reverse a payment that we received and reported to them and then payment bounced so we never got the money and they bill us for 30% of a payment that we never even received funds on. Please I could go on and on … DO NOT USE THIS COMPANY FOR YOUR COLLECTIONS OR YOU WILL REGRET IT!!

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    Joey Schmelzer says:

    September 23rd, 2013 at 5:04 pm

    TekCollect came to us on the premise that they would go in stages and collect overdue balances. We did not receive any money through TekCollect. The sales rep was very convincing until we signed to use their services. Then she mysteriously disappeared. Use your money more productively, either on a reputable collection agency or an attorney specializing in collections.

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  • Rating
      
    customer says:

    March 11th, 2013 at 1:15 am

    I just received notice that Tek collect is attempting to collect from us. My husband and I spent over 4 hours listening to music on the phone and never got to speak to a person. If Tek Collect wants to get money from people, they should answer the phone!!! This is exceptionally frustrating for us since this is actually a case of identity fraud and we need it cleared from our records. We have not received any correspondences from the original company nor Tek Collect. If I had a business, I would not employ Tek Connect to collect money for me. I would never see it judging by the customer service, or lack thereof, to which I have been treated.

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    settherecordstraight says:

    March 7th, 2013 at 8:59 pm

    For some reason this mostly a few people with very little knowledge throwing stones at a company and the people there performing some tough work. We have Reviewopedia here ribbing a good company to pitch his own wares, a kid who does not grasp marketing 201, and “barney fife” with sour grapes because he isn’t selling ice in the desert and paid for failure. TekCollect is a good opportunity for both a business who wants to maximize the #1 driver of cash flow and the eager professional rep who has the moxie to actually inform the business he/she has the solution!

    BTW, I am a six year 1099 with 712 clients…….. Go on keep crying, it will help you succeed in business just like on TV. How are those soap operas going any way?

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    annoy says:
    October 23rd, 2013 at 4:24 pm

    Yah and you sit on your butt and do shit cause we use your company to collect our past due accounts and we received only a couple hundred dollars for your collection efforts. Then we have to pay you for collection that we have done on our own. I have seen many of our accounts sit ofr a whole year and noting was done except for being transfered around from one desk to another at your company. Not a single collection call or letter was placed… Your company is just a scam and I wish we didn’t have a contract. You guys add in your own payments when noting was pais just so you can collect the 30% fee. And you don’t even train us how to use your system or have any instructions or ways to contact if we have a question on account. And GOD forbid we make a mistake and post a payment wrong …. hell it never gets corrected but you will continu8e trying to collect on it even if we posted in in error…. DO NOT USE THIS THERE COLLECTIONS PRACTICES SUCK AND YOUR BETTER OFF TRYING TO COLLECT IT YOURSELF!!

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    Phil Grooms says:

    March 1st, 2013 at 9:13 am

    !- I have been involved with collections since 1960 first as a field representative (collector) with MAJOR corporations. Entered sales and became involved in business equipment leasing. Owned my own collection agency in the mid 80′s and involved in the mortgage industry from late 90′s till 2008. Understand every aspect of the collection industry from collecting, repossessing, skip tracing to underwriting credit and sale of the service. TekCollect has the most sophisticated system on the market and it’s services are custom designed for each business. Their ad on Career Builder was very straight forward and the recruiter was equally honest and direct in his representation of his company and product. My check on the company and it’s history was easy and actual call to BBB in Columbus verified all I needed.

    What I see in these reviews are timid, lazy, ignorant people that are afraid of the hard work that is required to acheive 6 figure incomes.
    So they cry about a base salary that was NOT IMPLIED OR PROMISED anywhere in a job description. So if you are looking for a base salary position, Walmart is open in many locations 24 hours.

    If you are looking for OPPORTUNITY and the responsibility to determine your own income, consider a TekCollect, insurance industry, Real Estate, mortgage broker, or start your own business. If not, cry to Obama and write your ‘woe is me – it is their fault’ reviews of those companies that actually pay you for your true efforts.

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    What Equity says:
    March 3rd, 2014 at 9:31 pm

    Spoken like a true corporate crook! Why did you get out of the mortgage business in 2008? Couldn’t you find anymore government loan programs to sell to unqualified people? Now your bugging the same people you already screwed once. Debt collectors are scum, your no different regardless of what industry you bounce between.

  • Rating
      
    MIKE HEADRICK says:

    November 3rd, 2012 at 7:16 am

    After watching local news in Kansas city i would not use tekcollect. Tek collect appears to be a scam. Tek collect is likely a scam.Dont hire tekcollect

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    Anna says:
    October 15th, 2013 at 6:04 pm

    They will make you pay an upfront fee of $350 to work for them and promise you that once you collect so much money they will give it back to you …. Bunch of Bull!! Furthermore this company never really hires you as an employee … instead you are hired as an independent contractor and you will have to pay all of your own taxes on what you make or at the end of the year you will be screwed with IRS!! Please people dont work for this crappy company… seriously it is not worh it . You will make more money at flipping hamburgers at Mcdonalds!!

    diana says:
    September 28th, 2013 at 7:10 pm

    they offerd me a job why do you say they are a scam dianahanna64@yahoo.com

    Vance says:
    March 23rd, 2013 at 9:18 am

    I’m considering working for this company, can you shed more light as to why you perceived them as a scam and would not hire them?

  • anony says:

    December 13th, 2011 at 7:42 pm

    OK, my review is actually for cap360.net which I was told at the interview was part of TekCollect. They charge the same start up fee and are also all commission and claim they use the name Cap360 when doing sales but TekCollect for collections (and they make it clear that all sales, checks to employees (contractors) and marketing is done under the name Cap360). I asked about other names they operated under and was told that none existed. I was told either they have been around around 30 years or had one business relationship-I forget which one-for 30 years. Yet another website claims tekcollect was around since 1999 –soooo I am not sure how a 30 year history of any kind is possible. I tried to find different info on the BBB site but they have only been on file (under tekcollect) since 2006. There is no cap360.net info to be found. The ratings w/BBB are good (assuming it’s the same company) at B or A+ depending on which entry you pull up (they are both out of OH which is apparently the company’s HQ) I still need to contact the chiropractor’s association and Chase Bank to see if I can find out more about this relationship they have w/Tek-Collect (aka TCI, TekCollect and Cap360.net). I hate to say anything is crooked unless I know more. If anyone else has anything please post it here. I am saving this link to my favorites. Thanks.

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  • Rating
      
    Mark says:

    September 19th, 2011 at 11:35 am

    I work for TekCollect. Yes, I am an independent contractor. Most positions in the U.S. are this way. I love the company and the work. TekCollect helps businesses collect on the money that’s owed to them. They do this better than any agency out there. It’s a shame that TekCollect gets their image smeared because some low-skilled, inexperienced, money grabber looked at a 6 figure job on Monster and got scared by it.

    TekCollect has delivered every promise they made to me…including the up front fee. There’s always a cost of doing business. By the way, that fee paid for all my sales materials including personalized business cards. Is TekCollect a scam? Absolutely not.

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    Betsy Ain't SoSmart says:
    January 12th, 2014 at 11:32 pm

    THIS BUSINESS IS NOT BBB ACCREDITED
    TekCollect
    This is a direct copy from the BBB website.

    Betsy Ain't SoSmart says:
    January 12th, 2014 at 11:30 pm

    It seems like TekCollect only hires the classiest people out there since everyone that “works” for the just calls people names for giving the company a poor rating. Betsy Smart says the company is an a+ business with the BBB. Check the BBB website. TekCollect is not an accredited business with the BBB. I will admit I have never interviewed with TelCollect but anyone that thinks a legitimate company would require $350 upfront just for training materials is going to get scammed. If a company is turning people over so often they want to charge for training materials they might need to re-examine their hiring process.

    Anna says:
    October 15th, 2013 at 6:09 pm

    Mark is acting like a well paid employee when actually he is a manager. contractor my butt

    Betsy Smart says:
    December 2nd, 2011 at 11:43 pm

    p.s. Tek Collect has an A+….A+ rating with the BBB. It says right on the BBB Website they have been in business since 2001. Instead of you people blowing hot, useless steam, why dont you spend your energy actually accomplishing something worthwhile.

    Betsy Smart says:
    December 2nd, 2011 at 11:01 pm

    It’s a shame some people dont know a good thing when they see it…you are stupid people trying to act smart. It just so happens Tek Collect is very legitimate; in fact, they are an endorsed vendor of the Pennsylvania Dental Association. If you dont believe that either, here’s the link: http://www.padental.org/Content/NavigationMenu/ResourcePrograms/EndorsedVendors/default.htm

    Tom Condrasky says:
    October 26th, 2011 at 8:28 am

    Mark,
    What part of the country do you live in?

    I met with Reg Mgrs in MD; would enjoy more insight from a contractor.

    Tom C.

  • Rating
      
    Barry Anderson says:

    August 1st, 2011 at 12:22 pm

    There are promises that don’t add up here. Doesn’t work that way. Don’t be fooled

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    Vance says:
    March 23rd, 2013 at 9:20 am

    Care to elaborate at allllll?

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    barney fife says:

    July 24th, 2011 at 2:30 pm

    TekCollect and AmerAssist are both bait and switch companies who thrive on hoodwinking their applicants as well as their customers. TekCollect and AmerAssist is owned by the same bunch of scam artists. Don’t be fooled by their BS. Any one who believes you are going to make $3,000.00 a week when you are only selling to really small businesses is a fool and deserves to get scammed. These companies only allow you to work on small deals but when you come up with a big deal either company will either insist you allow them to handle it or fire you once you close it so you get screwed royally.

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    Anna says:
    October 15th, 2013 at 6:12 pm

    Couldnt have said it better myself!! Tekcollect is a bunch of bull crap!!


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