Consumer Law In the News

Bogus Debts and Heavy Activity

As this article from ConsumerAffairs.com makes clear, debt collection companies across the country are aggressively pursuing illegitimate debts from consumers. I’ve posted about this before, and it continues to be a big problem. But thankfully, state attorneys general are beginning to take notice of the anticonsumer activities taking place inside their jurisdictions.

Example: West Virginia’s Attorney General Darrel McGraw filed suit against one company reported to his office by a consumer who was alert enough to figure out the angle on the company persistently calling her and insisting she owed a debt that she knew wasn’t legitimate. The outcome for the company: $1,000,000 in “debts” being canceled against WV consumers.

The takeaway lessons here:

1. Know Your Finances! Unless you have a clear picture of what you owe to whom, you may well be unable to spot an attempt to collect an illegitimate debt. Keep good records. It’s especially important to maintain one master record (a sheet of notebook paper will do, or you can use any of the software programs available for tracking your finances) that lists all debts, the creditors’ names and addresses, account numbers, and balances. This allows you to consult it and see at a glance whether a particular debt is legitimate or not.

2. Know the Law! Each state has a Statute of Limitations applicable to specific kinds of debts. If that time period has expired on your debt, the collector has no right to the money, and the Statute is a perfect and complete defense to any attempt to collect. (I’ve blogged about that before, here.)

Don’t let fear get in the way of doing what’s best for you and your family. Contact an attorney immediately, if you suspect you’re being targeted by such a company. If you are fairly sure that this is happening to you, you may also want to contact your state’s attorney general’s office as well as any consumer affairs organization or agency in your area.

© 2006 SC Bankruptcy & Consumer Law Blog.