Call it a sign of the times. The state is suing an Everett-based collection agency because the business is accused of harassing, threatening and even swearing at consumers.
Collectors at Topco Financial Services Inc. were accused of calling debtors losers, scum, blights on society, no-goods, low-lifes, deadbeats, worthless, or terrible parents, according to a news release issued Friday by the state Attorney General’s Office.
“With many consumers in financial crisis, collection agencies are busier than ever,” said Sharon Smith, an assistant attorney general. “While they have a right to try to collect on debts that you legitimately owe, they must treat customers fairly and cannot bully, inundate you with harassing phone calls or lie about what will happen if you don’t pay a bill.”
Smith noted that problems with collection agencies have grown steadily since 2001, when they were eighth on the state’s list of consumer complaints. With Topco, which collects for tow companies as well as other firms, the state has received 120 complaints since 2005.
But this column isn’t just about Topco. The company isn’t alone in receiving consumer complaints. In an industry where people don’t get paid if they don’t extract money from someone in debt, the numbers will certainly keep growing in our troubled times.
So what can you do to avoid collection harassment?
It may sound obvious, but paying your bills on time is Smith’s first recommendation. If you’re overwhelmed by bills, look for some online advice from a publication by the Federal Trade Commission: http://tinyurl.com/a64dfw.
You should also know that bill collectors are supposed to be fair and honest and have a limit on how and when they contact you. Smith noted that you can send a letter to the debt collector telling the agency to stop contacting you. After that, the only thing the company can do is to contact you to notify you that you have been sued or to confirm that they will stop further contact.
Legally, collection agencies must provide their name and address the first time they contact you and also give you the name of the person or business claiming that you owe them money.
Agencies also have to tell you how much you owe and describe any fees involved.
Collection agencies can’t call or write you more than three times a week, and only one of those calls can be at work. And they can’t call after 9 p.m. or earlier than 8 a.m.
Collection agents also can’t threaten violence or use offensive language.
If you have a lawyer, state law prohibits collection agencies from calling anyone else, so definitely let collectors know if you have legal representation. If you don’t, the contacts involving other people can only be to find out your home or work address. Collectors aren’t allowed to tell people that you are in debt.
Other no-nos:
Collection agencies can’t publish lists of debtors, claim to be from law enforcement or another government agency, garnish wages or take items from your home without a court judgment, or threaten to put you in jail.
If a collector is doing something you believe to be illegal, you can file a complaint with the state attorney general. You can find a complaint form online at http://tinyurl.com/c83mey or call toll-free at 800-551-4636.
The important thing to remember here is that while you may be a low-life, a deadbeat or a blight on society, it’s illegal for bill collectors to call you that, and you can fight back against that kind of behavior.
Mike Benbow: 425-339-3459 or benbow@heraldnet.com.
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