Under a consent decree issued late Monday, lawyer Mar vin Brandon is permanently banned from collecting debts in Colorado; lawyer Jack H. Boyajian is banned from collecting debts in Colorado for five years, and lawyer Karen Nations is banned from collecting debts for three years in Colorado.

Original story from the Denver Post

Third-party debt collectors generated 78,000 complaints to the Federal Trade Commission in 2008, twice the number received in 2003, according to the agency’s most recent report. That same year, the agency won more than $1 million in civil damages against collection agencies.

You can read the entire article here: Suits Piling up for Debt Collectors.

Some debt collectors are just doing their job, but others cross the line.

Fox 29 Consumer Reporter Michelle Buckman explains how to stop debt collector harassment and maybe even collect some money from them:

Read the story on MyFoxPhilly.com here: Real Deal: No Harassing Debt Collectors

See this story about a class action suit filed in New York regarding this problem: Suit Claims Fraud by New York Debt Collectors

They know they are violating the law but they still do it anyway.

There are three types of illegal voicemails:

• Illegal threats or lies.
• Third party disclosures.
• Failure to leave the mini-miranda.

Debt collectors often call repeatedly when collecting a debt, leaving messages whenever possible and rely on the fact that consumers often don’t know their rights.

You can read the article in it’s entirety, here: Three Types of Illegal Voicemails from Debt Collectors

Radio Interview

NCO’s hope: A simple chat will convince people to pay old debts.

“We have to strike a bond with someone,” said the company’s CEO, Michael Barrist. “We want them to explain their situation to us, and we’re going to try to work out an arrangement that they and the client can live with. That is our goal, so that they can pay our client.”

Despite the best wishes of Barrist, the world’s largest debt collection company generates thousands of consumer complaints about its practices each year and has paid settlements of $1.8 million to federal and state authorities.

But officials at NCO Group, based in the Philadelphia suburb of Horsham, Pa., insist that NCO takes pains to follow state and federal laws. Abuses by NCO collectors are the exception, not the rule, Barrist said.

“People have a perception of what and who the debt collector is,” Barrist said. “That’s not us.”

With unemployment and foreclosures rising, Americans now face more pressure from debt collectors, who must work harder to squeeze out payments in lean times, according to consumer advocates and industry experts. Consumers are increasingly complaining about debt collection practices to the Federal Trade Commission, and many of those complaints are levied against the industry giant, NCO, which employs 15,000 debt collectors worldwide and holds 600 million to 1 billion collection accounts at any time.

“We clearly understand that people don’t like being called by collection agencies,” Barrist said. “And we can’t make it a pleasant experience because nobody’s ever going to say, ‘Gee, I’m glad you called today.’ But we try very, very hard to make sure it’s done professionally.”

Since 2007, NCO has generated 7,964 consumer complaints to the FTC, nearly twice as many any other debt collection company.

Many of the complaints claim the company violated federal law by misrepresenting debt, repeatedly calling other people, and failing to send written notice, according to the FTC records.

Furthermore, the rate of complaints against NCO is rising faster than the collection industry as a whole. During 2009, all debt collection complaints to federal authorities are on track to increase 6 percent over 2007. In the same time period, complaints against NCO have risen 23 percent.

“I think we have the best record in the industry, statistically,” Barrist said, since the company handling the most accounts is likely to have the most complaints. “With that said, I take every one of these complaints seriously. I’m a big believer that regardless of whether NCO is at fault or not, the first thing we should be doing is saying we’re sorry and hearing what is going on.”

The FTC disciplined NCO in 2004 with a civil penalty for $1.5 million for misreporting consumer information to the credit reporting agencies, according to the FTC. Barrist blamed the blunder on another collection company, now-defunct Commercial Financial Services, which had worked the debts before NCO.

In 2006, Pennsylvania authorities settled with NCO after the company generated 800 complaints over a two-year period. NCO paid the state $300,000 and promised to follow the law. A spokesman for the FTC declined to say if it is taking any action against NCO, and a spokesman for the Pennsylvania’s attorney general office said it doesn’t have any pending cases against NCO.

Founded in 1926 as National Collection Office by Barrist’s grandfather, the company has grown explosively in the last two decades. In 1991, NCO had 63 employees, according to a company profile at the time. Now, it has 34,000 employees, about half of whom work in collections, according to Barrist.

Consumer advocates argue that the only way to get results in tough times is to be as aggressive as possible. Ira Rheingold, executive director of the National Association of Consumer Advocates, points out that NCO pays its collectors in part based on how much money they can recover.

“You’re going to see lots of bad behavior,” Rheingold said. “Institutionally, you have created a system that will encourage abusive behavior and harassment.”

Barrist disagrees. Outrageous tactics don’t work — and they hurt a collection company’s bottom line, he says.
“If you’re abusive to them on the phone, they’re not going to pay you,” he said. “All it does is start a whole chain of complaints and problems for the company.”

Original article here: Scripp News

If you or someone you know is feeling harassed by NCO, you do have rights. Please contact us or call us at 1-800-NOT-FAIR for free legal help.

Even though the Federal Trade Commission (FTC) received nearly 80,000 complaints last year concerning debt collectors and unfair practices, its largely believed that only a small percentage of debt collector violations are actually reported by consumers. And while most debt collectors stay well within the boundaries defined by the Federal Fair Debt Collection Practices Act (FDCPA), there are others who use illegal tactics including threats and intimidation to collect a debt. It’s important that consumers, who may be behind on their bills, know that debt collector harassment comes in various forms from intimidation to use of obscene or profane language-all being illegal.

It’s even more important to provide examples of some common bogus and illegal debt collection practices. Below are four illegal and bogus tactics that some debt collectors use:

1. “You’re Wages Will Be Garnished To Recover This Debt”: Unless a debt collector has legal authority to do so, they can not threaten legal action; third party collection agencies have no legal authority. In addition, the only way your wages can be garnished by a creditor is if a creditor has a won a judgment against you.
2. “You Better Pay Up Today Because We Know Where You Live”: It may be hard to believe but more than 300 FTC complaints last year were made by consumers citing threats of violence. Even implying physical harm to collect a debt is illegal.
3. Discussing Debts With Neighbors, Relatives and Employers: Debt collectors frequently call relatives and even employers to obtain information about debtors. Verifying addresses or even contact information keeps debt collectors safe in the realm of fair debt collection practices, however discussing the debt or even hinting they are calling about a debt is illegal.
4. “We Are Going To Issue a Warrant for Your Arrest If You Don’t Pay This Bill”: Failure to satisfy a debt is a civil matter, not a criminal one. Any debt collector who states you will go to jail for not paying a bill is breaking the rules pursuant to The Fair Debt Collection Practice Act (FDCPA).

There are many more debt collector harassment techniques including the use of intimidation of which consumers should be aware. It’s important that consumers know their rights as described under The Fair Debt Collection Practice Act (FDCPA) and stop debt collectors, who engage in illegal debt collection practices, in their tracks.

REMINDER: all cell phone numbers are being released to telemarketing companies and you will start to receive sales calls.

…. YOU WILL BE CHARGED FOR THESE CALLS

To prevent this, call the following number from your cell phone: 888-382-1222.

It is the National DO NOT CALL list. It will only take a minute of your time. It blocks your number for five (5) years. You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.

HELP OTHERS BY PASSING THIS ON .. It takes about 20 seconds.

FTC LINK: http://www.ftc.gov/donotcall