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Debt Collection Firms Penalized For Abusive Tactics

Minnesota's Department of Commerce is clamping down on the abusive tactics of debt collection firms. Eight firms are facing severe financial penalties ranging from $40,000 to as high as $300,000.  These firms are being accused of harassing consumers, stealing personal financial information and hiring felons as collectors. The firms that are being penalized include Allied Interstate, General Revenue Corp., Va Ru Corp. of Illinois and Nationwide Recovery Systems.

Allied Interstate faces up to $300,000 in penalties. The list of violations is numerous. This includes firing collectors for abusing debtors but failing to them to state regulators for breaking the law. There is one example in which an Allied Interstate collector used the code phrase "the meat is on the grill" to tell a co-worker he had stolen personal financial information from another debtor.

Allied Interstate had to pay $1.75 to the Federal Trade Commission in 2010 for collecting debts that were not owed.  To read more of their abusive tactics and the penalties imposed on these debt collectors, click here.

 

SmithMarco, P.C., has over 30 years of combined experience practicing law protecting the rights of consumers around the country.  Debt collectors use many different tactics to convince people to make a payment to them. Some of these tactics are actually legal, some are over the line. How do you know when the collector is violating debt collection laws? Tell us about your situation and we'll review it for free to tell you whether there are potential claims under the Fair Debt Collections Practices Act.

 

 

 

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