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Trustee takes over Deca Financial Services

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Fishers-based bill-collection firm Deca Financial Services LLC missed a March 17 deadline to come up with more than $11 million to avoid involuntary Chapter 11 reorganization sought by its creditors.

That means bankruptcy trustee Ellen Fujawa will take control of the firm, which in 2012 was named one of the fastest growing Indiana companies and offered $2.5 million in conditional tax credits from the Indiana Economic Development Corp. for its job-creation plans.

Deca, founded in 2010, told the bankruptcy court earlier this month that it had lined up financing to pay creditors to avoid being forced into Chapter 11. But David J. Tipton, an attorney for the company, said the plan hit a snag when a potential purchaser of company land pulled out at the last minute.

Earlier this month, U.S. Bankruptcy Judge Robyn Moberly told Deca if it failed to make the deadline the trustee would immediately assume control of the company.

The company is believed to have 80 employees and about 200 customers, based on court documents.

Deca’s problems came to a head late last year. BMO Harris Bank alleged the company owed it millions of dollars in loans. The bank tried to recover the money in Hamilton Superior Court, and the company’s accounts were frozen.

Deca said it then couldn’t return money to customers for whom it collected money from delinquent consumers. It also cited health issues with CEO and founder Todd Wolfe, and issues with managers who were later dismissed. Creditors also include the Indianapolis law firm Barnes & Thornburg, which said it is owed more than $800,000.

In March 2012, Deca told the state it planned to spend $2.6 million on an expansion that would boost employment from 130 to 270 by 2015.

 

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  • God is in control?
    Sooooo it's God's fault they're $11 million in debt?! I bid godspeed to Deca's closure!
  • uh help
    I have been paying on an account with DECA since Nov.2013. I've just found out, and by pure accident, that DECA is having let's say issues. Sooo, who have I been paying? Where has my money been going? I can't get anyone on the phone or get a this so called general hotline number. Can someone help? You may contact me at rburgenheim@gmail.com.
  • Please Contact Me - Ex-Employees
    If you are an ex-employee of DECA, please contact me at stop.deca@gmail.com. I have some information I'd like to share with you. Thanks!
  • Horrible Ethics
    DECA was the most lowly collector I have ever encountered, and was floored by their lack of ethics. Apparently they've committed mass perjury in the courts, and overcharged their legal fees by about 4:1. Check out this YouTube video which is about DECA committing perjury in order to commit this gross overcharge. There are plenty of ethical collection companies in Indiana; let them have this business so that it can be done ethically. http://www.youtube.com/watch?v=fvd8u9-s2WM For over 80% of the 2000+ sued accounts in 2013 (outside Fort Wayne), DECA's involvement in collections was on average more than DOUBLING the debts owed, by adding on extra fees and costs! For about half of these sued accounts, DECA was being paid MORE revenue from these debtors than the doctors to whom the original bills were owed. DECA's practices appear very self-serving, and unethically so. Many of us citizens were appalled by their behavior. All of this information I'm presenting has been looked up via public court records, at doxpop.com. It's easy to do, if you have a few hours to spend on it.
  • Can't stop laughing
    As a former employee this really amuses me. Wolfe says he knew nothing of the problems until Dec. yet he fired the manager he is blaming all of this on in June.. Then they continued to allow fdcpa violations (threats to sue by employees not eligible to do so, not sending letters when needed, etc.) then fired half of their collections floor with no validation and the ones that were left threatened to take their bonus for petty reasons. Following this story and hearing the tall tales told by the owner are beyond amusing.. Thank you for the laughs.
    • God is in control of Deca
      I'm praying for all of this that is happening and I know that God is in control of the situation.
      • interesting
        I bet there is a really interesting back story here. It would be good reading if the IBJ got a little more in depth. I always think that when a company accepts tax breaks/econ dev $ it should subject to a little bit more media scrutiny. Best wishes to the company. Hope Deca make good on the $ they owe. Also hope they recover from this and continue to grow.
        • LOL
          Oh the irony...

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