New York State Shuts Down Debt Collection Companies That Used Illegal Scare Tactics
Attorney General Andrew M. Cuomo announced that his office has shut down a New York collection operation that consisted of at least nine debt collection companies across Western New York, run by Buffalo resident Tobias Boyland. This is the latest action in Attorney General Cuomo’s ongoing investigation of unlawful debt collection practices. According to hundreds of consumer complaints filed with law enforcement agencies across the country, Boyland’s employees violated state and federal law by routinely posing as law enforcement officials, threatening to arrest consumers and throw them in jail unless they made arrangements to pay the company immediately. Under the terms of the court order obtained today by Cuomo’s office in Buffalo Supreme Court, Boyland’s operation will shut down all of its companies in the Buffalo area. Attorney General Cuomo also announced that his Office executed search warrants on four of the operations known locations and on Boyland’s residence this morning. When investigators from the Attorney General’s Office arrived at the residence, they found a loaded, .380 semi-automatic pistol on Boyland’s person. Boyland was taken into custody by the Erie County Sheriff and the Office of the Erie County District Attorney will handle the resulting gun-possession case. “Plain and simple, this company was run by people who lied, bullied and preyed on vulnerable Americans struggling to resolve their financial situation,” said Attorney General Andrew Cuomo. “Pretending to be a police officer, threatening to throw consumers in jail – these practices are as despicable as they are illegal. My Office will continue to relentlessly root out these kinds of tactics and shut down unscrupulous companies that violate the rights of consumers across New York and the entire nation.” According to the lawsuit filed by the Attorney Generals Office, Boyland, a convicted felon, and three other individuals ran numerous debt collecting companies that operated out of at least four locations in Western New York. The other three individuals named in the lawsuit are Kayla Pritchett, Dellian Sharp and Dorian Wills. Both Sharp and Will also have criminal records. These debt collection agencies operated under several names across the Buffalo area, including: Central Resource Management, Final Claims Asset Locators, Final Control Asset Locators, Interchange Payment Solutions, Next Step Services, Portfolio Asset Assurance, Silverbay Services, and Teleport. Their collectors routinely made scripted telephone calls designed to intimidate consumers into paying their debts. The debt collectors pretended to be law enforcement officers and threatened consumers with arrest and incarceration if they failed to pay. These employees also falsely informed consumers that they were being sued in civil court. Attorney General Cuomo’s investigation revealed that collectors regularly demanded payment for non-existent debts, demanded payments for debts that had already passed the statute of limitations , or substantially inflated the amount owed on an actual debt. Using their false law enforcement identities, collectors coerced and cajoled terrified consumers into agreeing to make payments. Frightened at the prospect of arrest and humiliation, consumers authorized withdrawals from their checking accounts, sent Western Union moneygrams and/or money orders out of fear. Consumers were intentionally given misleading names, addresses and telephone numbers that led them to believe the businesses were located far from the Buffalo area. Peter Dellinger of the Empire Justice Center said, The Empire Justice Center stands firmly behind Attorney General Cuomo’s efforts to stamp out fraudulent and abusive debt collectors across the country. In these times of financial hardship, dishonest debt collection companies are attempting to take advantage of honest, hard-working consumers. We thank Attorney General Andrew Cuomo for his leadership and for putting a stop to these merchants of financial misery. The federal Fair Debt Collection Practices Act, the New York State debt collection and consumer protection laws prohibit the following conduct: posing as an attorney, threatening lawsuits or other legal action which cannot be taken, saying a consumer committed a crime or will be arrested and talking with third parties except to get location information. The law further requires collection agencies to send a written notice within five days of initial communication with the consumer explaining how he or she can dispute the debt. If properly disputed, the collection agency must stop all collection attempts and send verification. Today’s action is part of a larger investigation by Attorney General Cuomo into unlawful debt collection practices. Earlier this month, Cuomo announced settlements with three Western New York-based debt collection companies to reform their deceptive methods. Attorney General Cuomo also subpoenaed nearly twenty companies and law firms operating as debt collectors throughout the state. His office shut down two collectors for threatening and intimidating consumers into paying debts that they did not owe. In early May, Attorney General Cuomo announced a lawsuit against two debt settlement companies for fraudulent business practices and false advertising by selling misleading debt settlement plans that very rarely deliver the promised benefits to consumers dealing with debt. Steve @GetOutOfDebtGuy Source: New York State Shuts Down Debt Collection Companies That Used Illegal Scare Tactics Other Related Articles to Read Florida Credit Repair Firm, U.S. Credit Find, Reaches Settlement With Illinois Attorney General New York Attorney General Goes After Loan Modification and Foreclosure Rescue Companies for Screwing Consumers Loan Modification Companies May Not Charge Up-Front Fees Says Florida Attorney General Debt Settlement Companies May Not Be Paid For Services Not Yet Delivered Says MO AG Texas Attorney General Files Charges Against Four Debt Settlement Groups Tweet This! Email this to a friend? Stumble upon something good? Share it on StumbleUpon Share this on Facebook Share this on Linkedin Seed this on Newsvine Share this on Technorati Share this on Tipd
The Collection Company Says My Income Counts in Repayment Even Though I Am Not On the Credit Card. – Kim
Kim wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty . If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help . “Dear Steve, My husband hasn’t worked a full pay period in months and therefore one if his credit cards went to collection. I am not on that card as a signer nor did my income get used for securing that card, however the debt collection company is telling him that my income is included and therefore I can pay it off. I don’t have the money to pay it off either and they aren’t working with him on a reasonable payment plan. They tell him the payments that are now more than doubled include legal fees. Can they legally include my income in consideration of paying off his debt if I am not on the card at all? Kim” Dear Kim, They can make any old claim they want. Making the claim does not make it so. I am at a loss to see how you would be responsible for his card unless you were an authorized user on the account. Even still that is a hard case to make. But if you were an authorized user you want to make sure that you contact the credit card company and have you removed from the account to prevent the negative status of the account from showing up on your credit report . I would suggest that you call the original creditor and confirm that you either not on the account or only an authorized user. If the collector continues to pursue there claims I would suggest you see a local attorney to represent you and contact the collection company. Big hug. Steve @GetOutOfDebtGuy Source: The Collection Company Says My Income Counts in Repayment Even Though I Am Not On the Credit Card. – Kim Other Related Articles to Read No Related Post Tweet This! Email this to a friend? Stumble upon something good? Share it on StumbleUpon Share this on Facebook Share this on Linkedin Seed this on Newsvine Share this on Technorati Share this on Tipd
Elizabeth Warren Fights for New Consumer Financial Protection Agency
I’m really happy to see my friend Elizabeth Warren out in front of new ideas to protect consumers from banks and lenders. Maybe the time has come that consumers will be entitled to some representation in government when it comes to banking products and the banking system. Ms. Warren, for years a scourge of Wall Street, has emerged as an influential force in the administration’s overhaul of financial regulations. The White House said the agency she helped inspire would strengthen consumer protection in areas including credit cards, mortgages and other financial products. If approved by Congress, it would be able to write new rules governing how products can be sold. Read the full article about Professor Warren and the CFPA here . Steve @GetOutOfDebtGuy Source: Elizabeth Warren Fights for New Consumer Financial Protection Agency Other Related Articles to Read Expert Testimony Worth Reading on H.R. 2309 the Consumer Credit Protection Act (Debt Settlement Industry Regulation) I’ve Said It For Years, a Debit Card is Not as Safe to Use as a Credit Card One in Three Consumers Spanked By Their Credit Card Companies Reforms Recommended for Debt Collectors and Debt Collection Industry Tithing, Saving and Getting Out Of Debt – The Personal Finance Bloggers Brain Trust Tweet This! Email this to a friend? Stumble upon something good? Share it on StumbleUpon Share this on Facebook Share this on Linkedin Seed this on Newsvine Share this on Technorati Share this on Tipd
