Recent lawsuit alleges that debt collector used Facebook to harass woman into paying debt
December 1, 2010 by Todd Murray · Leave a Comment
A Florida consumer, Melanie Beacham, has sued a debt collector for allegedly contacting one of her family members by using Facebook. The lawsuit alleges that Mark One Financial created a Facebook account using the pseudonym “Jeff Happenstance” and sent a message to Beacham’s cousin asking him to have Beacham call a number that leads to a Mark One collection representative. Beacham also maintains that Mark One used Facebook to contact her sister.
When reached for comment by the Huffington Post, a Mark One spokesman denied any knowledge of “Jeff Happenstance” and claimed that the company only uses Facebook when there is no other way to contact a debtor. In Beacham’s case, however, Mark One called her numerous times before resorting to Facebook, which indicates that Mark One already knew how to contact Beacham and resorted to Facebook to attempt to shame her into paying the debt.
The lawsuit, which seeks to restrain Mark One from using Facebook to contact debtors, appears to be the first one of its kind. But others are almost certain to follow as the economy continues a slow recovery and Facebook and other social media grow in popularity. And the use of social networks to contact debtors raises a number of interesting questions. For example, the Fair Debt Collection Practices Act requires that every communication from a debt collector contain a notice that “this communication is from a debt collector.” Does a message through Facebook fall under the FDCPA definition of “communication” and therefore require the notice? I say yes, but the ultimate answer will be up to the courts.
If you live in Minnesota and have been harassed by a debt collector through Facebook or other social network sites, feel free to use the contact form in the upper right corner of this page to contact me for a free case evaluation.
Woman Sues Debt Collectors Over Alleged Facebook Harassment | Huffington Post | November 17, 2010
Photo: http://www.flickr.com/photos/fbouly/3568409530/sizes/l/in/photostream/
Debt collectors are increasingly trying to collect debts from people that don’t owe them
September 15, 2010 by Todd Murray · Leave a Comment
A recent Washington Post story highlights a growing problem, which the story calls debt “tagging”. Debt tagging happens when a collection agency tries to collect from someone that doesn’t owe the money. In some cases, it appears to be an honest mistake. For example, the collectors may accidentally pursue someone with the same name as the person who owes the money.
In other cases, it appears to be intentional. The article tells the story of a Rhode Island woman who was pressured to give her social security number to a debt collector. Shortly after, she received a bill for $4,197 from a electric company for a home in Connecticut. The woman never lived in Connecticut. Only after many calls were made on the woman’s behalf, did the collection agency stop.
And even when it’s an honest mistake, the innocent consumer can have a very difficult getting the collector to stop. The main problem is the lack of information passed from collector to collector. It’s well know that many debts are sold, often several times. As the debt bounces from collector to collector, very little information is passed along. So a consumer being pursued for a debt that she doesn’t owe has a difficult time getting the debt collector to acknowledge its mistake because there’s often no way for the collector to verify the consumer’s story. And debt collectors are trained to assume the consumer owes the money unless they can prove otherwise.
The story advises that people being pursued for debts they don’t owe should send a certified letter to the collector explaining why they don’t owe the money. If the collection calls continue, the consumer should consult a lawyer.
‘Debt tagging’ by collection agencies a growing problem | The Washington Post | August 8, 2010
Consumer complaints about debt collection harassment on the rise. Again.
July 12, 2010 by Todd Murray · Leave a Comment
According to a recent CNNMoney.com story, consumer complaints about debt collector harassment soared 50% to 67,550 in 2009 and are on pace to grow another 13% in 2010. And complaints of debt collectors threatening or actually using violence more than doubled in 2009, to 2,517. The reason for these increases in these aggressive collection tactics seems pretty obvious. With unemployment at a record high, debt collectors simply can’t squeeze as much money from consumers as they used to. So they’ve resorted to more aggressive–and often illegal–collection tactics.
Although, if you believe the debt collectors, it’s not their fault. According a Mark Schiffman, a collection industry spokesman, the rise is consumer complaints should be blamed on…wait for it…consumers! In the story, Schiffman attempts to deflect blame from the collection industry by noting that “there’s a growing industry of consumer attorneys and savvy consumers who have learned that they can sue a debt collector fairly easily and collect very easily.” So according to Schiffman, it’s not that debt collectors are harassing more people, they’re just getting called on it more often by “savvy” consumers and their lawyers.
To learn more about your rights under the Fair Debt Collection Practices Act, consider downloading my free guide FDCPA Basics. And if you’ve been harassed or abused by a debt collector and want to stand up for your rights, feel free to contact me for a free case review.
Debt Collectors Get Nasty | CNNMoney.com | July 10, 2010
Texas man fights back against debt collectors
February 2, 2010 by Todd Murray · Leave a Comment
Craig Cunningham grew tired of repeated debt collection calls. So he decided to fight back by suing the debt collectors for violating the FDCPA and Texas state laws. In fact, Cunningham has filed 18 lawsuits and won over $20,000 from debt collectors. The story details a number of the tactics Cunningham has developed to bait collectors into violating the law. According to the story, he’s created quite a stir among the collection industry. In response to Cunningham and others like him, a new business opportunity has sprung up–one dedicated to helping collection agencies identify and avoid repeat FDCPA litigants.
I have mixed feelings about this story. On the one hand, I have a hard time mustering any sympathy for the debt collection industry–an industry that receives more consumer complaints than any other. But the FDCPA, and state laws like it, are designed to protect people against debt collection harassment and abuse. They’re not designed to be used to game the system to avoid paying debts. I’m also concerned that the debt collection industry will point to Cunningham and other aggressive debtors in their fight against stronger consumer regulations.
Dallas Observer | Better Off Deadbeat: Craig Cunningham Has a Simple Solution for Getting Bill Collectors Off His Back. He Sues Them | January 20, 2010 (via Consumerist)
How the FDCPA protects people from collection harassment and abuse
January 26, 2010 by Todd Murray · Leave a Comment
If you’ve been a victim of debt collection harassment or abuse and want to fight back, feel free to contact me for a free case evaluation.
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