The Federal Trade Commission announced recently that defendants in a debt collection scheme frequently targeting Spanish-speaking consumers will not only be required to pay a $3.3 million penalty, but will also be barred from doing future business.
Our Miami consumer lawyers have learned that the settlement agreement involves the two primary owners of Rincon Debt Management, who stood accused of violations of the Fair Debt Collection Practices Act, as well as the Federal Trade Commission Act.
Specifically, the company targeted calls to debtors’ family, friends, employers and neighbors. In doing so, collectors pretended to be delivering legal papers relative to a pending lawsuit. In some instances, the defendants were reportedly threatened with arrest if they failed to respond to the collection firm’s calls. Also, the two defendants, as well as their staffers, pretended to be attorneys – or employees of a law firm – and demanded that consumers pay legal fees and legal costs. This was despite the fact that in almost all cases, there was no pending lawsuit. In fact, there were many instances in which it was later revealed that the consumer didn’t owe the debt at all.
Herein lies one of the most important lessons that consumers can take away from these cases: It pays to fight back – or at least have the case investigated by an experienced consumer lawyer. Even if the debt collection agency is collecting on a legitimate debt, their tactics may be illegal. You may not actually owe as much as they are demanding. In some cases, even if you technically owe the debt, the statute of limitations may have run out or the collection firm may not be able to effectively link the debt to you in court.