ST. PAUL, Minn. (AP) — A debt collector tied to big banks is being sued by Minnesota’s attorney general over steep interest rates charged on overdrawn checking accounts.
Minnesota Attorney General Lori Swanson alleged Wednesday that Minneapolis-based Bradstreet and Associates broke state law by charging up to 21.75 percent in interest on bank debt. The lawsuit says the company was pursuing debt from overdraft costs on Wells Fargo and US Bank accounts. She isn’t alleging wrongdoing by the banks, which sold off the debt.
Swanson says the assessed interest rates weren’t allowed in customers’ original banking contracts and was many times what state law allows.
Calls to Bradstreet’s phone numbers did not go through. The company did not immediately return an email seeking comment.
The case seeks restitution and a halt to the collection practices.