TX Attorney General Sues Collectors
Date: Mon, 04/17/2006 - 22:54
Quote:
April 17, 2006 Texas Attorney General Greg Abbott last week sued Midland-based debt collection companies and their owners for engaging in widespread harassment of Texas consumers who were wrongly accused of owing debts. The harassment included threats to seize homes and possessions without court involvement. "In Texas, we do not tolerate the harassment of innocent consumers who do not owe money on a debt," said Attorney General Abbott. "Even those who are indebted and are paying off their obligations must be free from aggressive tactics and treated fairly. Today's court action sends a clear message to businesses that conduct themselves in this manner." Business Office Systems and Solutions (BOSS) and owners Danny L. and Pamela Kay Becker used numerous unlawful, aggressive tactics after acquiring consumer accounts and debt originally belonging to Viatel Inc., a telecommunications company that filed for bankruptcy protection in Delaware in February 2002. A company known as Debt Acquisition Inc. of New York purchased Viatel's debt and later sold it to Mapnad, a company created by the Beckers to contract with BOSS to collect on – and profit from – the outstanding Viatel debt. BOSS and other businesses controlled by the Beckers targeted consumers who allegedly owed money to Viatel for long-distance telephone services. Most consumers had either satisfied the debt they owed years earlier, while others never received a bill while the company was in bankruptcy. Nonetheless, four years later they were being repeatedly pursued by the Beckers, who had inflated the "bills" with fees and interest. The most egregious of the Beckers' practices involved threatening consumers with seizure and sale of property or repossession of valuables unless debts were paid, without regard for due process of law. The Beckers also failed to fully communicate to consumers and validate the debts they owed, and continued to harass for payment, even after consumers presented evidence the debts were not valid. These practices, plus the Beckers' failure to secure a surety bond for one year, violate the Texas Finance Code and Debt Collection Act. The Beckers also market their collections and accounts receivable management services to retail and commercial businesses, hospitals, clinics and health care providers. For example, BOSS entered into debt collection contracts with Covenant Health Systems of Lubbock and Ector County Hospital District dba Medical Center Hospital. The Attorney General's lawsuit seeks to return any money to consumers who were wrongly accused of owing debts and later paid the defendants. The suit also seeks civil penalties for violations of both the Debt Collection Act (Finance Code) and the Texas Deceptive Trade Practices Act. |
Source: Government Press Release
Interesting read, thanks for posting this. It's good to see a c
Interesting read, thanks for posting this. It's good to see a company like this being help responsible for their illegal tactics.
Where did you find this info? Could you post a link to the origi
Where did you find this info? Could you post a link to the original government press release? Hope I could talk to you through PM
Government often takes step against deceptive traders; however, the bad businesses should be brought under their attention first. And that is the responsibility of consumers.
curlycarl Indeed I found this at the collectors' own site col
curlycarl
Indeed I found this at the collectors' own site collectionindustry dot com. (I still don't know if this forum allows links posted, some of which I am a member don't). The Texas Attorney General's website is very good as well though. The Texas AG has banned several collectors from doing business in the state. I don't have a PM on my computer yet, but I can send you my email.
You cannot use the PM service unless you are a member of this fo
You cannot use the PM service unless you are a member of this forum. Please join this forum. If you don't want the free counseling, use the Community sign up form to join the board.
This site does not allow posting links, except government site. Once you are logged in to the forum, please PM me the info.