Cuomo shuts local debt collection agencies

NEW YORK, N.Y. - State officials have shut down two debt collection companies in western New York as part of a new investigation into alleged abuses in the collections industry.

New York Attorney General Andrew Cuomo says the two Buffalo-area area firms illegally hounded debtors, harassed their neighbors and threatened to have them arrested for not paying their bills. Investigators say the companies intimidated some people into
paying money they didn't owe.

The companies did business under various names, including Emanee Development and Dial Tech.

Authorities say the firms have agreed to pay restitution.

Cuomo's office says it is sending subpoenas to at least 15 other collection agencies across the state as part of a broad probe of the industry.