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State brings lawsuit against debt collector

On Behalf of | May 20, 2011 | Debt Relief

Many individuals in Florida and the country as a whole are dealing with debt problems in light of the recent financial crisis. Coping with high levels of debt can be difficult. It can be made even more so when debt collectors engage in wrongful practices. Such wrongful conduct can cause great harm to consumers.

Recently, a case has arisen involving wrongful debt collection practices. The case involves a large debt collection entity that is based in San Diego, California.

One of the entity’s companies has been accused of engaging in wrongful conduct in regards to its debt collection efforts. Allegedly, the company robo-signed affidavits and used these affidavits in debt collection cases. A government official in Minnesota has also accused the company of “hounding citizens for debt” they didn’t owe.

The state of Minnesota has now brought a lawsuit against the company in connection to these allegations. In the lawsuit, the state has asked that the company be stopped from engaging in wrongful practices and fined.

The debt collection entity claims that the company’s practices regarding affidavits were changed in 2009 and that its procedures are “legally sound.”

It will be interesting to see what happens with this case.

Wrongful debt collection practices can be very harmful and can have major impacts on consumers. Thus, one hopes that debt collectors will do everything they can to avoid practices like those alleged in the above-mentioned case. Also, one hopes debt collectors are held accountable when they do engage in wrongful conduct towards consumers.

Source: Reuters, “Minnesota sues debt collector for robo-signing,” Jonathan Stempel, 19 May 2011


Kingcade & Garcia | A Miami Law Firm