Wednesday, February 01, 2012
Debt collectors paying record fines over stretching the rules
The New York Times, in a story by Tara Siegel Bernhard, reports that the FTC has levied the second-largest-ever fine on Asset Acceptance, link (website url) here.
The company, which apparently buys other debt at pennies on the dollar, would make threats to sue consumers (which it cannot follow up) and to goad consumers into making partial payments to wipe out the expiration of limitations.
As noted before, employees in many debt collection agencies face extreme pressures to meet quotas and bend the rules.
Another company paying a big fine is West Asset Management.