HARRISBURG, Pa. - Chrysler Financial Corp. will pay the state of Pennsylvania $25,000 to settle allegations that the company violated state law by abusing or harassing debtors, said Pennsylvania Attorney General Mike Fisher.
Fisher said the payments are required under terms of an 'assurance of voluntary compliance' negotiated between the Attorney General's Bureau of Consumer Protection and Chrysler Corp.'s financial subsidiary, which has offices in Horsham and Monroeville, Pa.
Under the agreement, Chrysler Financial does not admit wrongdoing, but agreed to bring its business into compliance with state laws and to pay the state a $10,000 civil penalty and $15,000 to go toward the costs of the investigation.
Fisher said the assurance, filed May 6 in Commonwealth Court, alleges Chrysler Financial violated state consumer protection laws and debt-collection regulations by:
Abusing and harassing consum-ers by leaving messages and speaking with consumers an unreasonable number of times in one week and as often as five times in one day.
Phoning a consumer at the consumer's workplace even though the company had been notified in writing to cease such calls.
Phoning a consumer at the consumer's workplace even though the company had reason to know the employer had prohibited such calls.
Jack Ferry, a spokesman for Chrysler Financial, said, 'We work with customers on an individual basis to help them overcome delinquencies. Our customer service representatives are trained to follow company procedures, and those procedures do follow state laws for contacting delinquent customers.'