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Texas Debt Collection Firm Hit for Harassing Consumers

Attorney General slams firm for misconduct and violations of law

August 11, 2008

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The Texas attorney general's office has asked a court to stop Anderson, Crenshaw & Associates, L.L.C., a Dallas-based debt collection firm, from harassing debtors with deceptive letters and unlawful telephone calls.

Since 2006, the Office of the Attorney General of Texas has received more than 75 complaints alleging misconduct by the firm, while the Better Business Bureau has received 72 complaints.

"This debt collection firm is charged with unlawfully harassing Texas debtors," said Attorney General Greg Abbott. "At a time when too many Texans are struggling to protect their homes, the defendant's unlawful letters are threatening debtors with legal action, homestead liens and wage garnishment in violation of the law."

According to court documents, the firm mailed deceptive letters to debtors that unlawfully engaged in debt collection efforts during the same 30-day period debtors were given to validate their debts. Federal courts have maintained that debt collection firms may not undermine debtors' right to dispute the debt during this time period.

The company's letters also misrepresent that the firm has filed lawsuits against debtors who fail to make timely payments. In many cases, the debts did not meet the defendant's internal criteria to initiate legal action.

The enforcement action also accuses Anderson, Crenshaw & Associates of threatening to garnish consumers' wages or file liens against homesteads in violation of the Texas Debt Collection Act. According to several complaints, the defendant's representatives harassed, abused and threatened debtors during profanity-laden, repeated or continuous telephone calls.

The attorney general's enforcement action seeks civil penalties of up to $20,000 for each violation of the Texas Deceptive Trade Practices Act.

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