New York Attorney General Andrew Cuomo closed down two debt collection companies in Western New York. The two Buffalo-based firms engaged in a variety of illegal activities to achieve their ends, through various forms of harassment. The Attorney General’s office have delivered subpoenas to over 15 collection agencies due to complaints received in the wake of this investigation.
Debt Collection agencies that engage in illegal means of collection often use coercion and harassment to collect money that sometimes a customer might not even owe. These two Buffalo firms, for example, allegedly forced individuals to pay debts that they didn’t even owe.
This issue has achieved nationwide importance, as the Federal Trade Commission has received three times the amount of complaints regarding debt collection agencies in 2008 in comparison to 2002. There is no doubt that this investigation will lead to the downfall of more debt collection agencies that engage in illegal means to collect.
Tough business this debt collection – significant rules about their activities, serious penalties if they get it wrong. I am sure that most are on the up and up and are aware of the costs of dropping the ball. As in any industry, a few bad apples can ruin the whole thing. The bad ones should be shut down but the good ones do provide a valuable service.
For more on this investigation…click here.
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