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ABUSIVE DEBT COLLECTORS GET HIT WITH $1.3 MILLION SETTLEMENT
by Lawrence C. Melton, Esq. lmelton@dhayeslaw.com
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(November 15, 2007 - Thursday) - November 15, 2007
ABUSIVE DEBT COLLECTORS GET HIT WITH $1.3 MILLION SETTLEMENT
by Lawrence C. Melton, Esq. lmelton@dhayeslaw.com
THE HAYES LAW FIRM, www.dhayeslaw.com
Do you owe money on a loan, mortgage or credit card? If you fall behind in paying your creditors you need to be on guard against debt collection agencies. All too often out-of-control debt collectors employ abusive and harassing tactics to obtain their goals. Just because you owe them money doesn't give them a right to intimidate you, harass you, and intrude into your daily life. There are certain legal boundaries that debt collectors may not cross.
Download fair_debt_collection.pdf
A decision earlier this month demonstrates this. A Texas-based debt collection company, LTD Financial Services was using abusive and harassing tactics against consumers. They falsely threatened that they would garnish consumers' wages, seize or attach their property. They falsely threatened they would initiate lawsuits or bring criminal actions against the debtors if they failed to pay. They inappropriately called debtors at their place of work and disclosed the existence of debts to family members, employers, co-workers and neighbors. They called consumers incessantly. When the consumer hung up the phone, the collectors immediately called back. Some of the debt collectors even used racial slurs and profanity.
Hundreds of consumer complaints against LTD Financial Services were filed with the Federal Trade Commission, the Houston Better Business Bureau, and the state attorney general. LTD was aware of the complaints as they had in place an internal compliance program that regularly caught the violators. The only problem was that LTD would not discipline the out-of-control debt collectors even when presented with evidence of multiple egregious violations.
It was up the Federal Trade Commission to step in. The FTC filed a complaint in the Southern District of Texas, Houston Division, alleging that LTD committed numerous violations of the FTC Act and the Fair Debt Collection Act. Here is a copy of the complaint available at www.ftc.gov :
Download complaint_ltd_financial_services.pdf
On November 6, 2007, the FTC announced that LTD Financial Services will pay $1.3 million to settle charges that it misled, threatened, and harassed consumers in violation of federal law. Here is a copy of the Consent Decree available at www.ftc.gov :
Download consent_decree_ltd_financial_services.pdf
The Hayes Law Firm is a securities arbitration law firm dedicated to the zealous representation of victims of securities fraud and abusive debt collection practices. Visit our web page at www.dhayeslaw.com or call us toll free at 1-866-332-3567.
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