Debt Collection Firms Penalized For Abusive Tactics
Posted: Friday, October 14, 2011
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.