July 8, 2005
An Illinois-based debt collection company will pay $20,000 in fines and costs following claims that it used threatening, abusive and harassing tactics when contacting Pennsylvania consumers located in Allegheny, Berks, Crawford, Fulton, Mercer, Northampton and York counties.
Pennsylvania Attorney General Tom Corbett said his Bureau of Consumer Protection took action against First Credit Services Inc., doing business as Stanley Weinberg & Associates, Glen Ellyn, Illinois.
The action resolves alleged violations of Pennsylvania's Consumer Protection Law, Fair Credit Extension Uniformity Act and the federal Fair Debt Collection Practices Act.
Investigators said company employees typically contacted consumers by telephone in an attempt to collect past due financial obligations. In several cases, consumers complained that the callers used overly aggressive and abusive tactics including illegally contacting neighbors, family members, friends and employers in an attempt to collect the debts owed.
According to the legal action, the company allegedly:
• Repeatedly called consumers with the intent to abuse, annoy or harass;
• Used profane, obscene or other abusive language;
• Made an unreasonable number of calls to consumers in a short period of time;
• Contacted third parties to inform them that consumer owes a debt;
• Contacted consumer's place of employment when representatives knew such calls were prohibited;
• Falsely claimed to be an attorney or from a law firm;
• Falsely represented the legal status of a debt;
• Used deceptive means to collect debts or obtain financial status of consumers including falsely claiming to order a credit report to obtain asset information.
"Consumers must know that abusive, harassing and threatening behavior on the part of a debt collector is illegal in Pennsylvania," Corbett said. "In this particular case, we heard from residents who claimed to have been told that their salaries would be garnished, their homes would be taken away and that they were in serious legal trouble."
Corbett said an elderly York County woman complained that the company contacted her neighbor claiming to be a Pittsburgh law firm with an urgent matter involving the consumer.
Another consumer from Berks County said that the company contacted her parents to inform them that their daughter was in serious trouble with the law. She said the company also continued to contact her at work even though she repeatedly asked them to cease calling.
Under the terms of the legal agreement, the company is permanently barred from violating state and federal debt collection laws. In addition, First Credit Services will pay $20,000 in civil penalties and investigation costs.
