Dean Malone and our firm’s client, Melissa Jenkins, appeared in a Dallas television news story last week. We represent Ms. Jenkins regarding alleged harassment at her place of employment. An Atlas Credit Co., Inc. employee went to Ms. Jenkins’ place of employment when attempting to collect a debt. Ms. Jenkins alleges that the employee would not leave until police were called. Here is a link to the story -
Debt collectors use a variety of tactics and terminology, and I have found over the years that many debt collectors use the same words and phrases. Some like to say “good luck” at the end of a harassing call or voicemail message. Many like to say that they are “legal representation” for a creditor. Others will tell a consumer that the collector will “mark it down as a refusal to pay” if the consumer does not make a payment over the phone. There is a provision in the Texas Debt Collection Act regarding this “refusal” language.
The Texas Debt Collection Act prohibits a debt collector from representing or threatening to represent to anyone other than a consumer that the consumer is willfully refusing to pay a non-disputed consumer debt when it is in dispute and the consumer has given the debt collector written notice of the dispute. Debt collectors will often violate this provision in order to harass the consumer through disclosure of private, yet false, facts to a consumer’s friends, co-workers, family, and neighbors.
The Texas Debt Collection Act prohibits a person, while attempting to collect a consumer debt, from accusing falsely or threatening to accuse falsely a person of fraud or any other crime. We see this violation frequently, and it usually occurs in one of the following ways:
Threatening to arrest someone for failing to pay a debt
Accusing a consumer of defrauding a creditor simply because the consumer was unable to pay a debt
Telling a debtor that she is going to be prosecuted if she does not pay a credit card bill
Alleging that a person will be charged with “wire fraud” because the person secured a payday loan online but was unable to pay all amounts when due
If you owe a debt and have experienced any of the above, the conduct more than likely violates the Texas Debt Collection Act. The Act makes a violating person liable for actual damages, attorneys’ fees, and costs. A court can also grant an injunction against the debt collector.
The Texas Debt Collection Act prohibits a debt collector from using or threatening violence or other criminal means to collect a debt. This is an obvious prohibition: a person cannot commit, or threaten to commit, criminal acts in order to obtain money from another person. Aside from being obvious, it might appear that the Act prohibits conduct that might never occur. Surely debt collectors don’t commit crimes just to collect debts. We have actually seen the following in cases we have handled:
Threat to “shank” someone
Threat to cut someone
Assault
Threat of assault
Unlawfully obtaining telephone call records
If you have been threatened with bodily injury by a debt collector, contact the police immediately. You might need to be persistent. Some police departments will tell you that you are calling about a civil matter, and that there is nothing that the police can do. However, when someone threatens to harm you, the threat might be a commission of a crime.
The West Virginia State Attorney General announced that he has settled alleged unfair collection practices cases against Allied Interstate, Jefferson Capital Systems, and Wilhelm, West, Kacey & Associates. The allegations against each company vary. An article about the settlements is here -
A news site is reporting that Rent-A-Center settled a lawsuit which contained allegations that one or more Rent-A-Center employees kicked in a consumer’s door related to attempts to collect past-due payment(s). The news site alleges that the plaintiff alleged that a 21-month old girl, standing behind the door, was injured. “The defendants maintain their denial of liability and the settlement was a compromise to avoid the expense of trial, said their attorney Ralph Dublikar.” Here is a link to the story -
We filed suit in El Paso last week against Buddy’s Furniture, a local deputy constable, and an apparent Buddy’s manager, related to alleged improper attempts to collect a debt. Our client, a young man who had done business with Buddy’s, alleged in part that a fully-uniformed deputy constable appeared at his place of employment and threatened to arrest him if he did not make a payment on his account. T. Dean Malone (Dallas) and Scott Vogelmeier (El Paso) are acting as co-counsel in the suit. Here is a link to an El Paso television story in which Mr. Vogelmeier appears -
We have heard thousands of stories over the years about abusive debt collectors. There are plenty of debt collectors who comply with the law. However, for those who don’t, they tend to use the same tactics. I ran across a news story (link below) which had all the elements of harassment that I have seen many times.
Our firm recently resolved a few cases against ACE Cash Express, Inc. (“ACE Cash Express”) related its alleged telephone collection tactics. ACE Cash Express attempts to collect alleged payday loan debts allegedly owed by consumers. We currently represent Texas consumers in twelve (12) lawsuits against Ace Cash Express related to collection calls.
We have obtained evidence of several actions and/or tactics used by one or more purported ACE Cash Express agents and/or employees when calling Texas consumers about allegedly past-due debts. We express no opinion as to whether one or all actions and/or tactics listed below are proper or improper. Instead, we are seeking information regarding each to determine how to best represent our clients. Specifically, we have noted the following (in substance) by likely ACE Cash Express employees:
Representing that they are conducting an investigation
Representing that there is an “active case” involving a consumer and/or that a “case” had a certain number (when no lawsuit had apparently been filed), and/or that a case would be filed
One representation that an employee has “case workers”
Representations that a consumer’s “case” had been turned over to the caller’s “office”
Representation that a “case” could be “dismissed,” when no lawsuit had apparently ben filed
Allegations of consumers writing a “hot check,” NSF check, and/or “bad check”
An allegation that a civil judgment could be taken against a consumer
An allegation that a consumer’s wages could be garnished
Allegations about consumers paying “restitution” by paying monies toward satisfaction of an alleged debt
Representations to consumers that they should retain attorneys
Requests to take a “statement” and/or a recorded statement
Representations by a caller that a consumer was no longer “in collection(s)” (when calling about an alleged past-due debt)
Requests to consumers that consumers transfer the call by Ace Cash Express to consumers’ supervisors and/or consumers’ employers’ human resources department
Allegations that Ace Cash Express would schedule personal contact at a consumer’s place of employment to verify demographic information
We are seeking witnesses who reside in Texas and who might be able to corroborate and/or shed light on these actions and/or tactics. It is our understanding that the ACE Cash Express telephone collection operation is in Irving, Texas, but that calls are placed to cities across Texas. If you possess information which might assist in investigating and/or pursuing these cases, please contact one of the following attorneys at (214) 670-9989:
The number of fraudulent techniques used by some debt collectors appears to be unlimited. Now, apparently recognizing Facebook’s popularity, some debt collectors are using the social networking site in an improper way. Take a look at this news story.
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