Under federal and state law, debt collection agencies are prohibited from using certain abusive and fraudulent tactics to coerce debtors into paying off their debts.

If the debtor is able to prove that debt collectors have violated their rights, they may be entitled to damages. In some cases, debt collection agencies that are found guilty may be forced to shut down.

Here are four of the most compelling debtors’ rights cases.

Goldman Schwartz, Inc.

In 2013, the Federal Trade Commission prosecuted Goldman Schwartz, Inc., a debt collection agency based in Houston.

The FTC alleged that the agency threatened individuals with arrest and falsely claimed to work closely with local law enforcement.  

A U.S. District court shut down the company.

Academy Collection Service, Inc.

A nationwide debt collection company called Academy Collection Service, Inc., and its owner paid $2.25 million to the FTC in a settlement.

The company allegedly rewarded debt collectors who used abusive and fraudulent tactics while ignoring complaints it received from debtors.

Global Asset Financial Services Group, LLC case

In the 2019 case against Global Asset Financial Services Group, LLC, debt collectors allegedly claimed to be attorneys or closely associated with attorneys.

The FTC also claimed that the company was involved in phantom debt collection, which occurs when debt collectors try to collect debt that either does not exist or which is not owed to the company.

The defendants agreed to settle charges and the company was banned from debt collection.

Rumson, Bolling & Associates case

Rumson, Bolling & Associates debt collecting agency was fined $700,000 in 2013 for its abusive debt collection tactics.

Among other transgressions, debt collectors allegedly threatened to dig up the dead family members of debtors who had funeral debt. One debtor allegedly threatened to kill and eat a debtor’s dog

Your rights as a debtor

As these cases illustrate, debt collection agencies that engage in illegal tactics can be prosecuted. If you believe you are the victim of abusive or fraudulent tactics, seek legal counsel from a law firm such as The Werner Law Group. 
We can help you. Don’t be pushed around by debt collectors. Contact us here on our website, or text Leslie at 361-648-6888.