Bankruptcy

Collection Tactics: Take Two

By mcbride

Here is another outrageous situation involving illegal tactics used by some collectors.  In this instance, the agency targets only US military and as part of its routine collection efforts, it threatened jail time as well as a dishonorable discharge if the service member did not pay.  Happily in this case, the agency is now shut down and the owner is barred from the collection business, albeit for only a short time. 

“Accusations against Lowinger included threatening service members with arrest by military police and receiving dishonorable discharges if they did not make good and pay up on loans they had received as advances on their paychecks….’Ms. Lowinger would tell the family that they would need to make restitution, or the family member in the military would be dishonorably discharged and arrested by the military police.’

If this ploy failed, Lowinger ordered her staff to locate the commanding officers of service members in arrears, authorities said. When they got an officer on the phone, the call was transferred to Lowinger, who was not above screaming at them.”

Here is a link: http://www.buffalonews.com/city/article346103.ece

Michael

Full post as published by Texas Lawyer Blog on February 22, 2011 (boomark / email).