Daily Archives: February 2, 2012

Is $2.5 Million A Slap On The Wrist?

Michigan debt collection company AGREES to pay $2.5 million dollar fine.

Would you do that if  you had done nothing wrong?

In virtually the same statement every P.R. person makes for every corporation caught red-handed, Asset Acceptance states:

image credit:  Dreamstime

“In a statement, Asset Acceptance said that the settlement ended an F.T.C. investigation that began nearly six years ago, and that the company did not admit to any of the allegations. “We are pleased to have this matter behind us, and to have clarity on the F.T.C.’s policies and expectations of the debt collection industry,” said Rion Needs, president and chief executive of Asset Acceptance.”

I’m sure it was all just a misunderstanding.

Asset Acceptance, a collection agency, handles thousands of debts. How are they supposed to know which ones were discharged in bankruptcy, which are past the statute of limitations?

I mean, they work in all 50 states, and probably other countries, each with its own statutes of limitation.  Hey, checking all those out would be, you know, WORK!

They probably cannot get slave labor, so, more work, means more employees, or lower productivity for existing employees, which costs more, which cuts profits.

GREED – GREED – GREED.

There is a reason it is one of the seven deadly sins.

I agree with the NCLC spokesperson quoted in the N. Y. Times article linked to above:

image credit:  Dreamstime

“The penalty “is certainly a slap on the wrist and probably a little bit more, but it really depends on what the F.T.C. does to enforce this in the coming months and years,” saidRobert Hobbs, deputy director at the National Consumer Law Center and author of “Fair Debt Collection” (National Consumer Law Center, 1987)”