Jeff's Blog

Attorney Debt Collector Loses for Renting out His Letterhead

The only thing worse than getting a letter from a collection agency, is getting a collection letter from an attorney.  Even if the letter says nothing about being sued.  A consumer will, most likely assume that a lawsuit is "on its way", since an attorney sent the letter.

Consumers can and do get sued a lot for outstanding debt.  However, this is not always the case.  Sometimes collection lawyers have no intent on suing the consumer. Could these letters sometimes be used just to scare the consumer into paying off his or her debt?  Absolutely.  If the debt collector is not having any luck collecting on debts, the company will hire an attorney or lawfirm to try and collect on the debts.

However, the New York collection firm, Upton Cohen & Slamowitz was recently found to have violated  federal consumer protection laws by failing to conduct a meaningful investigation of an underlying debt.  According to Forbes, the Judge said that lawfirms such as these are merely renting out their letterhead without reviewing case files or conducting investigations.  This can evidenced by things like the use of computer-generated form letters, facsimile signatures and a high volume of notices processed.   In one day this firm issued at least 211 debt collection notices, and a total of 3,000 that same month.  Damages against this lawfirm have not yet been decided.

If you are receiving debt collection letters from an attorney or a lawfirm - make sure you do your own investigation.  At the very least, contact Jeff or a consumer attorney in your area to review your debt collection letter.

Jeff Suher, Pittsburgh Consumer Attorney who specializes in the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. 

Jeff sues abusive debt collectors and helps consumers that have incorrect information on their credit reports.