Debt collector accused of posing as a government agency
The defendant, Patrick D. "Dylan" White, and his businesses, CASHMAX, Fed Cash, TOPCASH and Cash Service Center, have been prohibited from any further distribution of fraudulent mailings under a temporary restraining order.
White incorporated his firm under the name Federal Cash Advance of Oklahoma, LLC, and maintains offices in Dallas County. According to state investigators, the defendant sent bogus collection letters to Texans with outstanding debts. The letters were delivered in envelopes containing the Dallas County Clerk's forged signature and improperly bore the official seals of both the State of Texas and Dallas County.
The envelopes contained phony debt collection notices that instructed recipients to call a telephone number belonging to Federal Cash Advance's CASHMAX offices.
The letters illegally threatened criminal prosecution, referenced a phony "case number" and cited fictitious criminal penalties of up to 5 years in prison and heavy fines.
The Texas Finance Code prohibits debt collectors from threatening debtors with prison sentences. It also bans deceptive collection notices that improperly pressure debtors to pay their debts.
The State is seeking court-ordered penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act and the Finance Code.