sentences:  In a lawsuit in Iowa, the check diversion company agreed to refund money to class members.A federal court in Michigan ruled that the private company was violating the Fair Debt Collection Practices Act by using district attorney letterhead and falsely threatening consumers with arrest.A federal court in Sacramento, California ruled that the person who ran the private company violated the Fair Debt Collection Practices Act and California law by charging unlawful fees, pretending to be the district attorney's office and making false threats to have check writers arrested., and later awarded about $750,000 in damages.