Creditors Bugging You - Know Your Rights

Charges Are Filed Against Florida Collection Agency

West Virginia Attorney General Darrell McGraw recently filed suit against Florida collection agency for unlawful, coercive debt collection practices. Beginning in 2006, consumers complained that they had received calls from this agency suggesting they would be arrested if they did not pay a cellular telephone bill. According to the lawsuit, this agency tried to coerce payments from consumers by implying that a "federal marshal" would appear at the consumer's workplace, or that a deputy sheriff would serve a warrant for the consumer's arrest. Any debt collection contact involving an accusation of a crime or similar conduct is strictly forbidden by law. Consumers also reported that this agency threatened to sue them if they did not pay. Because this particular collection agency employs no lawyers and does not file lawsuits of any kind, these threats were misleading and therefore, unlawful.

Con Artists Pose As FTC Employees

In their latest effort to defraud the public, con artists claiming to work for the Federal Trade Commission are calling consumers and claiming that they have won a lottery or sweepstakes. As the nation's consumer protection agency, the FTC never collects money directly from consumers. But the public may be fooled, because by using Internet technology, con artists can make it appear that they are calling from Washington, DC, where the FTC is headquartered. The FTC's name may even be displayed on consumers' caller ID machines. All the public has to do, according to the con artists' pitch, is pay the taxes and insurance on their "winnings." The caller asks that consumers wire money or send a check for an amount between $1,000 and $10,000. In reality, there is no prize, and the scammers disappear with the consumers' money. Real sweepstakes don't require you to send money to claim a prize.