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Debt Collection Privacy Breaches Buffalo NY

Thursday, December 05, 2013 - Posted by Philip Harvey

The operator of several debt collection companies, Joseph Bella was found by the Attorney General to repeatedly breach the US Fair Debt Collection Practices Act. The structure and setup of several of the debt collection companies was very unique, such that he would only operate them one at a time for less than six months at a time before moving operations onto the next entity / company.

In collecting debts, the companies would send verification of employment forms to employers. In the US, you are only allowed to obtain location information from an employer with respect to debt collection. The verification forms requested wage details, dates of employment, whether or not wages were already being garnisheed. The forms implied that they would garnishee the employees wages. However they did not ever hold Judgment against the debtor.

In addition to these violations, the debt collection company send letters in the name of a solicitor who had no knowledge of the file, and for over a 12 month period no longer worked for the debt collection company.

A settlement was reached with a $US 165,000 fine and orders to change business practices.

It should be noted that in our opinion, these debt collection practices in Australia would also be considered breaches of privacy and against the ACCC ASIC guide to debt collection.

This article was sourced from www.LoanSafe.org


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