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Feds Cracking Down on Aggressive Debt Collectors

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Despite warnings, lawsuits and huge settlements, it doesn’t seem that debt collectors get it.  We often report on settlements reached when debt collectors are found to have violated state and federal law.  However, as the following article discusses there are still many rogue debt collectors using often illegal tactics in the debt collection practice.

http://www.latimes.com/business/la-fi-debt-collection-20120820,0,977465,full.story

The part of the article that really gets me is the part discussing how the Brachfeld Law Group began garnishing the wages of California State Senator Lou Correa!  It turns out that they had the wrong guy.  They were looking for a Luis Correa.  Similar name, different social security number.  However Brachfeld failed to recognize this and went after a State Senator.  Unfortunately for Brachfeld and the others out there, Sen. Correa is now pushing through legislation to require debt collectors to document that they are pursing the right person for the correct amount of money.  According to this article, the bill is pending in the California Assembly.  We’ll be keeping an eye out for the progress of that bill.  Don’t be intimidated by these debt collectors, especially if you think they are acting in error and/or illegally.  We always recommend consulting with a seasoned debt settlement attorney when dealing with creditors.  You might have to pay a fee for legal representation, but that’s far better then paying on a debt you might not even legally owe!

Feds Cracking Down on Aggressive Debt Collectors was last modified: November 1st, 2014 by Kevin Fallon McCarthy
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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.
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