NCO Group, Inc. Agrees To Pay A Fine Of $250,000 for Illegal Debt Collection
Score one for the Consumer. The Texas Attorney General agreed to settle unfair debt collection claims against NCO Group, Inc. and/or NCO Portfolio Management, the company's debt buying unit in the amount of $250,000.00. The Texas Attorney General alleged that NCO violated the Texas Debt Collection Act by making harassing phone calls and using profanity to scare and harass debtors. A quick Google Search for NCO will reveal some very interesting things about the company.
Texas law prohibits consumer debt collectors from using unlawful threats and/or coercion in an attempt to collect consumer debts. Interestingly, as part of the settlement, NCO admitted no wrongdoing. Yea right.
To be honest, I have sued NCO and many other debt collectors, and they are never willing to admit that there was any wrongdoing. The usual terminology in the release states: "This is a doubtful and disputed claim, and the Creditor hereby admits no wrongdoing." If they are not wrong, then why pay $250K to settle. It will not cost nearly that much to fight the case, and they probably have insurance to pay for their defense. On the other hand, the Texas Attorney General's office may have had some problems with their case as well, and the settlement of $250K was a great settlement. This is one of the greatest things about practicing law, negotiating a settlement that is favorable to your side without revealing all of the bad parts of your case, knowing that if the other side knew even 25% of the bad stuff, they wouldn't offer you a dime.
I'm only speaking tongue in cheek. I really do not know the specifics of this case. However, I am glad that the Texas Attorney General was able to crack down on abusive debt collection techniques. This may save some consumers from being abused. Did I really say that? Do you think that this will prevent debt collection abuse? Nah, me neither.
The settlement will be split between the Texas General Revenue Fund ($100,000.00) and the Texas Attorney General fund ($150,000.00) to cover legal fees and expenses.
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, and Naples and has expansion plans for Sarasota. Mr. Dellutri also sits on the Board of American Board of Certification. Mr. Dellutri is also one of the founders of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri also writes for the firm's personal injury litigation blog.
