There are many debt collection scams going on across the country. Allied Litigation Group, a company that claims to be based out of Houston, Texas, has been named a phony debt collection agency by the Better Business Bureau.
It is only one of the debt collection scams affecting people nationwide. Complaints against the “company” have been filed with attorney generals in Texas, Ohio, Florida, and the Federal Trade Commission.
The language company employees used in the calls was described as “very aggressive, very threatening, and very angry.” They claimed they were criminal investigators or court officers who had warrants or court-proceedings against the alleged debtor, and even threatened them with arrest.
In addition, the company would not provide proof of the alleged debt to the people they were calling. “They have never sent me proof,” said Patrick Gaghan, one of the people who filed complaints against Allied Litigation Group. “They just kept demanding money or saying they’re getting warrants for my arrest.”
If you receive a call from a debt collector, do your homework. Debt collectors are required by law to provide you with a written statement of how much is owed and to whom the money is owed. If you have further skepticism, you can call the original creditor to ask if the debt has been turned over to a collection agency.
If a debt collector threatens you with arrest, this is a BIG warning sign. The Constitution of the State of Florida, Section 11, states that “no person shall be imprisoned for debt, except in cases of fraud.”
This is not always the case, however. In some states, debt collectors are manipulating courts by asking the debtor submit a document called a Fact Information Sheet or appear in court for an “examination” of the debtor’s ability to pay. If the debtor does not comply, they may be held in contempt of court, which may result in a warrant for their arrest.
If you are receiving calls from a debt collector, legitimate or not, a Florida debt collection attorney can help you understand your rights and how you should go about resolving the issue.
Sources: Law Firm Newswire ; Daily Finance ; KHOU.com
*Photo Courtesy of stockfreeimages.com
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