Texas AG Sues Debt Collection Agency and Senior Dating Service

Texas Attorney General Greg Abbott announced Friday that his office obtained a temporary restraining order and asset freeze against a specialized dating service that targeted senior citizens. In addition to various violations of state business codes, Abbott said that the company and a separate collection agency ran afoul of state debt collection laws.

Abbott’s lawsuit claims that the defendants, Matchmaker and Sagejax Inc., would cold-call seniors who were looking for love and attempt to enroll them in a fee-based dating service. During the prospective calls, potential customers were falsely told that “thousands” of individuals were included in the dating service’s database.

Potential customers who expressed an interest in the dating service were encouraged to visit the defendants’ office for an in-person consultation. At the consultation, consumers allege that Matchmaker used high-pressure sales tactics to get the seniors to sign up.  One 65 year-old female prospective customer told investigators that one of the named defendants placed himself between her and the door and told her he would not let her leave until she signed  up for the program. Other witnesses said that the same man told prospects that his pastor, Joel Osteen, said “we were meant to go two-by-two,” and that it was God’s will for them to sign up for the program.

According to court documents filed by the state, the defendants charged between $3,000 and $10,000 for their services.

Individuals who elected not to join the service and pay the fee were told to pay a “termination fee” – or face a debt collection action by defendant Monterey Financial, a separately-owned and operated debt collection agency that was allegedly working for the defendants. Investigators determined that for the purposes of this enforcement action, Monterey failed to file a bond as security, which Texas law requires.

The Texas Attorney General’s Office is seeking to secure frozen assets to satisfy a future court judgment on behalf of senior citizens and others who were harmed by the defendants. The State’s enforcement action was brought under the Texas Deceptive Trade Practices Act, the Telephone Solicitation Act, and the Finance Code for debt collection violations.

Greg Abbott also made news Sunday as he officially launched his bid to replace Rick Perry as Governor of Texas. Abbott, a Republican, is considered an early front-runner for his party’s nomination.