Debt Collector and bankruptcy updates this week.
Looking at another Buffalo NY area debt collector,
Galbo Sims Holding LLC.
Debt Collector Abuse
Someone mis-representing himself as a process server, connected with Clear Credit Resolutions LLC, calls my client telling him to pay $530 now or be sued and have to pay $788 plus court fees.
What for? says the consumer.
For a hospital bill we bought, that’s all we can say.
My client succumbed to the lying strong arm lies and sent them the money, for a debt to “Detroit Surgery Associates” which he never heard of until now.
Under the Fair Debt Collection Practices Act, there are remedies available to him for this debt collector abuse.
That federal statute applies to third party debt collectors, that is, companies or attorneys collecting someone else’s debt. And, it applies to a debt owner who bought the debt when it was in default.
Although, as is not unusual, it appears my client did not owe any debt.
Debt Collector Law Firms
Weltman, Weinberg and Reiss does lots of debt collection work in Michigan.
“Debt collectors who misrepresent that a lawyer was involved in reviewing a consumer’s account are implying a level of authority and professional judgement that is just not true,” CFPB Director Richard Cordray said in a statement. “Weltman, Weinberg & Reis masked millions of debt collection letters and phone calls with the professional standards associated with attorneys when attorneys were, in fact, not involved. Such illegal behavior will not be allowed in the debt collection market.”
The law firm denies the charges.
In collection calls and in form letters, the CFPB alleged, Weltman Weinberg repeatedly stressed that it was a law firm. The form letters were on formal law firm letterhead with the phrase “Attorney at Law,” according to the CFPB’s complaint in the U.S. District Court for the Northern District of Ohio. In some letters, the firm referred to possible “legal action” against consumers who did not make payments.
Debt collectors told consumers during phone calls that they were calling from a law firm, sometimes referring to Weltman Weinberg as the “largest collection law firm in the United States,” the CFPB’s complaint said. Those calls were made even though “Weltman attorneys generally had not reviewed a corresponding consumer’s individual account file to reach a professional judgment regarding whether the consumer owed the debt,” the CFPB alleged.
I will be following this story.