Tuesday, August 12, 2008

Dallas debt collection firm slammed by Texas Attorney General

By Pegasus News wire

DALLAS — The Texas attorney general's office announced today that it has asked a court to stop Dallas-based debt collection firm Anderson Crenshaw & Associates from harassing debtors with deceptive letters and unlawful telephone calls.

Photo not provided by Texas State Attorney General

Debt collectors are normally a friendly, law-abiding people

According to the Attorney General of Texas, their office has reportedly received over 75 complaints since 2006 alone alleging misconduct by the firm, while the Better Business Bureau has received 72 complaints.

"This debt collection firm is charged with unlawfully harassing Texas debtors," said Attorney General Greg Abbott. "At a time when too many Texans are struggling to protect their homes, the defendant's unlawful letters are threatening debtors with legal action, homestead liens and wage garnishment in violation of the law."

The complaints against the collection firm should come as no surprise to anyone ever harassed by a debt collection agency. The laundry list of wrongdoing is a standard one: for starters, according to court documents, the firm mailed deceptive letters to debtors that unlawfully engaged in debt collection efforts during the same 30-day period debtors were given to validate their debts. Federal courts have maintained that debt collection firms may not undermine debtors' right to dispute the debt during this time period.

Secondly, the company's letters often claimed that the firm had filed lawsuits against debtors when in fact, the debts did not meet the defendant's internal criteria to initiate legal action. The attorney general gave this letter as evidence.

Thirdly, the enforcement action also accuses Anderson, Crenshaw & Associates of threatening to garnish consumers' wages or file liens against homesteads in violation of the Texas Debt Collection Act. According to most of the complaints, the defendant's representatives harassed, abused and threatened debtors during profanity-laden, repeated or continuous telephone calls. All of these are clear violations of state and/or federal law.

The attorney general's enforcement action is seeking civil penalties of up to $20,000 for each violation of the Texas Deceptive Trade Practices Act. You can read the documents here.

Source: Consumer Affairs

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