State Regulator Fines and Pulls License of Debt Collector

The Minnesota Department of Commerce said Thursday that it had revoked the licenses of a debt collection agency and its owner over “oppressive” and “reprehensible” practices and levied fines totaling $100,000 against the two.

Lonsdale, Minn.-based First Financial Services and its owner, Khemall Jokhoo, were each fined $50,000 for allegedly violating the Fair Debt Collection Practices Act (FDCPA), according to the state Commerce Department.

“We have shut down First Financial Services for oppressive debt-collection practices, which were reprehensible,” said Commerce Commissioner Mike Rothman. “This company caused consumers considerable loss and aggravation. By revoking their licenses and fining them $100,000, we want to be clear that these practices are not tolerated.”

In its original statement of charges, filed in January 2010, the department accused Jokhoo of lying on numerous debt collector registration applications, claiming he had never been charged, indicted, pleaded to, or convicted of any crime in state or federal court. However, Jokhoo was charged with attempted aggravated robbery and assault in Hennepin County District Court. The department revoked First Financial’s debt collection agency license in November 2009. Jokhoo’s individual debt collector licenses lapsed in June 2009.