Browsing Tag negative collection stories

Each week we bring you 10 of our most favorite stories from around the industry.

Week of October 31, 2010

1. Debt Collectors Face a Hazard: Writer’s Cramp

(New York Times, 10/31/10)

When Michael Gazzarato took a job that required him to sign hundreds of affidavits in a single day, he had one demand for his employer: a much better pen.”

2. Collection Lawyer Deanna Natale facing disciplinary hearing

(CNW, 10/31/10)

Markham lawyer Deanna Natale, daughter of former federal Liberal cabinet minister Judy Sgro, is scheduled to appear before a disciplinary hearing in connection with her law firm’s high-volume debt collection practice.”

3. Amherst man faces prison for selling debtor data

(BuffaloNews.com, 10/30/10)

An Amherst man faces up to 10 years in prison and a$250,000 fine for selling debtor information that was bank property, U. S. Attorney William J. Hochul Jr. said Friday.”

4. Pa. accuses debt company of deceiving consumers

(BloomburgBusinessweek, 10/29/10)

A debt collection agency used phony hearings in a room decorated to look like a courtroom to collect money from unsuspecting consumers, according to a lawsuit filed Friday against the company by Pennsylvania.”

5. Uptick in collection industry lawsuits

(Credit & Collections Risk, 10/28/10)

Fair Debt Collection Practices Act (FDCPA) lawsuits rose slightly to 455 in the Oct. 1-15 period compared to 441 in the last half of September, according to data from U.S. District Courts..”

6. Second man admits selling debtor info

(WIVB.com, 10/29/10)

U.S. Attorney William J. Hochul, Jr. announced today that Thomas Rice, 37, of Amherst, New York, pleaded guilty before Chief U.S. District Judge William J. Skretny to a felony charge of sale of debtor information which was property that belonged to a bank. This offense carries a maximum penalty of ten years in prison, a fine of $250,000 or both.”

7. Flaws Seen in IRS Decision To Fire Debt-Collection Agencies

(NASDAQ, 10/26/10)

The U.S. Internal Revenue Service may have relied on flawed data when it decided in 2009 to end the use of private agencies to collect tax debts, a government auditor said Tuesday.”

8. Collection Agency Raises Over $15,000 for Making Strides Against Breast Cancer

(PRLog, 10/25/10)

American Profit Recovery, a collection agency based in Michigan, Massachusetts and North Carolina, recently participated in the Making Strides Against Breast Cancer walks in three cities and raised a total of $15,500 for their efforts. Over $10,000 of the company’s fundraising total was donated by the company’s ownership.”

9. Better Business Bureau Warns Against Debt Collection Scheme

(NBC4i, 11/01/10)

The Better Business Bureau is warning consumers to be on the alert for scam artists posing as collectors of nonexistent payday loan debts. The scammers typically call consumers and threaten them with legal action or arrest unless the victims authorize immediate payments from their bank accounts.”

10. Just how long does that black mark stay on your credit report?

(KOMO News, 11/1/10)

It’s scary when you can’t pay your bills, and when creditors are calling and sending you those threatening letters. But it’s important to know long that debt stays on your credit report.”

Each week we bring you 10 of our most favorite stories from around the industry.

Week of October 3, 2010

1. Interactive Intelligence Acquires Latitude Software

(tradingmarkets.com, 10/08/10)

Interactive Intelligence, a provider of unified IP business communications solutions, has acquired Global Software Services, doing business as Latitude Software, a privately held provider of debt collection software and services.”

2. Jackson man sentenced in identity thefts

(clarionledger.com, 10/07/10)

A Jackson debt collector was sentenced today to five years and nine months in prison for stealing the identities of people with the same name.”

3. Movie Review: Breathless

(montrealgazette.com, 10/08/10)

Everything he does is violent: he slaps up women and calls them bitch (and worse), he beats his dad, he smacks his little nephew, and, oh, yes, as a professional debt collector, he attacks people in their homes so they’ll pay up.”

4. Disguised Debt Collectors Using Scary Social Media Tricks

(foxbusiness.com, 10/07/10)

Guess who’s viewing your online profile? If an image of the person you met at a friend’s party last week comes to mind you better guess again.”

5. Debt collector sued after calling consumer’s mom and dad

(louisianarecord.com, 10/07/10)

A debt collector is facing a lawsuit after a collection agent called the consumer’s parents and discussed the consumer’s debt.”

6. FDIC: Monterey County Bank agrees to $3 million settlement

(thecalifornian.com, 10/05/10)

A federal banking regulator announced today that Monterey County Bank has agreed to pay more than $3 million as part of a settlement stemming from allegations of deceptive banking practices.”

7. Report says Michigan among states that jail those who can’t pay debts

(detnews.com, 10/05/10)

Long banned in the United States, debtors prisons are returning in the form of debt-collection practices that send poor defendants to jail for not paying legal fees, according to two reports released Tuesday. Michigan was one of the states jailing people to poor to pay court and jail costs — even though the state constitution explicitly forbids the practice.”

8. FTC Proposes Policy Statement Clarifying How to Collect Decedents’ Debts

(docuticker.com, 10/05/10)

The Federal Trade Commission is seeking public comment on a proposed policy statement clarifying when the FTC will take action under the Fair Debt Collection Practices Act (FDCPA) and the FTC Act against companies trying to collect the debts of deceased consumers.”

9. Are local courts overstepping by helping bill collectors apply the screws?

(crosscut.com, 10/04/10)

The practice of suddenly jailing people who have failed to comply with collection requests comes close to violating a ban on imprisonment for debt. Judicial watchdogs are taking note and getting some relief, but many people desperately in debt are still helpless.”

10. State wins $23M from debt collector

(Chicago Sun Times, 10/04/10)

A Cook County judge ordered the law firm of Friedman & Wexler and its lawyers Mitchell Wexler and Norman Wexler to pay the damages as a result of a lawsuit the Illinois Student Assistance Commission filed in 2006.”

Each week we bring you 10 of our most favorite stories from around the industry.

Week of September 26, 2010

1. insideARM.com Announces the Best Places to Work in Collections 2010

(insideARM.com, 10/01/10)

The list includes 27 accounts receivable management (ARM) firms that braved a grueling judging process conducted by the Best Companies Group.”

2. Fightin’ Words: MSN Money Sucker Punches Debt Collectors

(insideARM.com, 09/28/10)

The debt collection industry found itself on the receiving end of two black eyes last week, each blow delivered at the hands of a major mainstream media outlet.  And although the enduring, collective harm done to the reputation of ARM companies in the two instances will vary in degree and kind, both events merit a response from anyone reading this blog.”

3. Media Reports Blacken Eye of Entire ARM Industry

(insideARM.com, 09/29/10)

And now to the industry’s other black eye: an ugly contusion, principally of its own making. (Read about the first black eye)”

4. Those  who complaint – what a blessing 

(insideARM.com, 9/29/10)

This may sound heretical to members of the ARM Industry, which for the past three years has been the target of more FTC consumer complaints than any other category of business…beyond even the used car salesman!”

5. Cushman vs. GC Services, L.P.

(Leagle.com, 09/30/10)

The district court granted GC’s motion for summary judgment with respect to Cushman’s DTPA claim, denied it with respect to her TDCPA claim, and ultimately directed a verdict in favor of GC on one of Cushman’s FDCPA claims. After the jury returned a verdict in favor of GC on the remaining FDCPA and TDCPA claims, the district court denied Cushman’s motion for a new trial. For the following reasons, we affirm.”

6. Lawyer Fights $276 in Late Fees & Foreclosure Threat, Over a Penny

(Courthouse News Service, 10/01/10)

An attorney claims his Hawaiian timeshare company charged him $276 in late fees and threatened to foreclose on his property because he owed it a penny. Jonathan Dorman says the Kahana Beach Vacation Club subjected him to abuse and threats until he wrung from it the information that it was charging him 20 months of late fees for a penny – which a supervisor said “appeared to be the result of a computer glitch.”

7. Stay Off the Hook for TCPA Claims

(Law.com, 10/01/10)

Automatically dialing cell phones could land your company in court and cost you millions, with a growing number of cases alleging violations of the Telephone Consumer Protection Act (TCPA) …”

8. Air Cuomo, Times Two

(NYDailyNews.com, 09/29/10)

The first ad, produced by Jonathan Cranin, “profiles Michelle Minton, a Republican mother of two from Buffalo. Michelle was harassed and threatened by a predatory debt collection company for a $4,400 bill she didn’t owe. Andrew Cuomo went after the company and had the people behind the threatening call arrested. As Attorney General, Cuomo has been a leader in cracking down and prosecuting predatory debt collectors who illegally harass New Yorkers.”

9. Franken Introduces Bill to Amend FDCPA, Raise Fines for Violations

(insideARM.com, 09/30/10)

After teasing it earlier in the week, Senator Al Franken formally filed a bill that would amend the FDCPA. The proposal includes adjusting violation liability limits to inflation. And the bill appears to have at least one Republican supporter.”

10. Fair Debt Attorney Sergei Lemberg Applauds Sen. Al Franken’s S. 3888, “The End Debt Collector Abuse Act”

(PRWeb.com, 09/30/10)

Fair debt attorney Sergei Lemberg today announced his support for S. 3888, “The End Debt Collector Abuse Act,” and applauded Senators Al Franken (D-MN) and George LeMieux (R-FL) for introducing legislation that would amend the federal Fair Debt Collection Practices Act. “Consumers have been subjected to unprecedented levels of abusive debt collection practices,” said Lemberg. “Congress must step in and shore up the FDCPA to further protect consumers against predatory debt collectors.”

Each week we bring you 10 of our most favorite stories from around the industry.

Week of August 15, 2010

1. ‘The Huckebee Show’ Features ‘Debt Collectors Gone Wild’ (VIDEO)

(TVSquad.com, 08/17/10)

The Huckebee Show‘ (weekdays, syndicated) on Tuesday featured the cautionary tale of Michelle Minton. The mother of two young children received a call from a bill collector — who also represented himself as a lawyer — claiming she owed $4,500.”

2. Judgments Are Not Worth The Paper They’re Printed On

(JD SUPRA, 08/19/10)

The current economic crisis is making the debt collectors scared. When there’s no money to put food on the table, even a favorable judgment through the courts means nothing. The judgment by itself doesn’t get you paid, according to Cincinnati debt collection law firm Slovin & Associates partner Randy Slovin.”

You can download a .pdf copy of the story here.

3. Minnesota orders debt collector out of business

(Star Tribue, 08/19/10)

A Wayzata debt collector who allegedly told a debtor “I will hunt you down like a dog” was ordered by state regulators to cease operations in Minnesota.”

4. Local debt-collection business expands to Sartell

(sctimes.com, 08/19/10)

A local debt collector’s business is booming — and its space is growing along with it.  Array Services is building a new home for one of its companies, ProSource Billing. Later this fall it will move into a new 23,000-square-foot facility in Sartell. Construction has already begun.”

5. SMITH v. ARROW FINANCIAL SERVICES, LLC

(Leagle.com, 08/17/10)

This is a Fair Debt Collection Practices Act (“FDCPA”) case in which Plaintiff Pamela E. Smith alleges that Defendant violated provisions of the Act through three voicemail messages and one email exchange. Defendant’s position is that both the voicemails and emails were left or sent in response to a specific request by Plaintiff at least a year into an ongoing and regular communication between Plaintiff and Defendant, and therefore were not in violation of the Act.”

6. Five men detained over debt collection released

(IrishTimes.com, 08/19/10)

FIVE MEN arrested by gardaí investigating aggressive debt collecting practices in the building trade in Dublin have been released without charge.”

7. Actions taken by debt collection agencies are limited by law in Oklahoma

(NewsOK, 08/18/10)

Seniors, beware. If you’re being harassed by calls from debt collectors, don’t be bullied into paying anything before knowing the law. In Oklahoma, the statute of limitations on most debt is three years and if you pay even as little as $5 on an old debt, you’ll reset the clock.”

8. Collection effort pays off

(TribToday.com, 08/18/10)

Warren’s debt collection agency has netted nearly $340,000 for city coffers since it started working on delinquent accounts four months ago.”

9. ANCHONDO v. ANDERSON, CRENSHAW & ASSOCIATES, L.L.C.

(Leagle.com, 08/16/10)

Defendant Anderson, Crenshaw & Associates, L.L.C. (ACA) appeals from a district court order awarding plaintiff Elsa Anchondo $63,333.52 in attorney fees, gross receipts tax, and costs under 15 U.S.C. § 1692k(a) after ACA agreed to a settlement in favor of Ms. Anchondo and the class she represents on their claims against ACA under the Fair Debt Collection Practices Act (FDCPA). ACA contends the district court erred in certain respects in determining the amount of the attorney fee award. We review the district court’s award for an abuse of discretion, see, e.g., Jane L. v. Bangerter, 61 F.3d 1505, 1509 (10th Cir. 1995), and affirm for the reasons expressed below.”

10. Collection Agency Opens Case On Anthony’s Court Debt

(WESH.com, 08/17/10)

ORLANDO, Fla. — Court records show that a collection agency has opened a case to recover money Casey Anthony owes on her theft case.”

Each week we bring you 10 of our most favorite stories from around the industry.

Week of July 18, 2010

1. Debt collection lands 3 men in Utah County jail

(ksl.com, 07/22/10)

Three men rush into a home in an attempt to recoup $400.

P.S. – If you are looking for a juicy story about a collection agency violating the law you’ll be disappointed.

2. Debt Collection: A Look Inside Collection Training

(PRLog.org, 07/22/10)

Michael Brazier of Freedom Debt Management reviews six tactics that collectors are using to “manipulate” or “trap” customers. Brazier lists thinking positively as one of those methods. Seriously? Positive thinking?

3. Debt collection can be a dirty business

(Tampa Bay Online, 07/21/10)

Attorney Jeff Kaufman says about debt collectors: “You’re talking about a bunch of guys in boiler rooms…these people do whatever they want…It’s pretty dirty.” Kaufman goes on to say that collectors “prey upon the weak” and calls collectors “creepy human beings.”

Too many movies perhaps?

4. Collecting a bounced check takes 1,600 days

(HAARETZ.com, access 7/23/10)

Interesting collection statistics from Israel. Buckle up. 

5. Some debt collectors turn to Facebook

(Arizona Daily Star, 07/20/10)

Consumer claims to be broke. Facebook photos show Corvette and fishing trip. Consumer decides to pay bill in full.

6. Collection Agency Welcomes New Team Members in Michigan Office

(PRLog.org, 07/19/10)

American Profit Recovery adds three to their sales team.

7. ‘RealHousewives of New Jersey’ star Danielle Staub files report with Wayne police

(NorthJersey.com, 07/19/10)

It doesn’t involve a professional debt collector, but we just couldn’t resist the story about a 30 year old debt and 50 phone calls in one day.

8. Debt Collection From the Collector’s Point of View

(The Atlantic, 07/16/10)

Editor Megan McArdle piggybacks off of CNN’s “confessions” slideshow and asserts that “The fact is, collecting money from those who owe it is a miserable job.  That means that the people who do it are going to be miserable–and that it’s probably hard to attract high quality workers.” Is this really a fact? Share your thoughts. 

9. New Financial Regulatory Law to Impact the Debt Collection Industry

(insideARM.com, 7/23/10)

ACA International, The Association of Credit and Collection Professionals, issued a press release concerning the Consumer Financial Protection Act of 2010 that President Obama recently signed into law. You might also be interested in FDCPA Defense Attorney Tomio Narita’s overview for collectors which can be found here.

10. CNN Spins Words of Ex-Debt Collectors into “Confessions”

(insideARM.com, 07/21/10)

insideARM.com’s managing editor Michael Klozotsky gives his two cents on  CNN’s “confessions” slideshow. You don’t want to miss this post.

A collection agency based in Bloomington, Minnesota had its collection license temporarily suspended by the Minnesota Department of Commerce for allegedly failing to remit recovered funds to its clients within 30 days. According to an article on InsideARM.com, the Department of Commerce claims the agency used the money to fund operations.

Here is Chris Hansen’s Debt Trap production which aired on Dateline NBC in March.

Part 1

Part 2

Part 3

Part 4

Part 5

Part 6