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Oregon Attorney Disciplined Due To FDCPA Violations

By Karen Oakes, Southern Oregon Bankruptcy Attorney

An Oregon attorney, Derrick McGavic is being disciplined for FDCPA violations as announced by the Oregon Attorney General’s Office this week.    Derrick McGavic, a Eugene, Oregon attorney whose law firm sued consumers for credit card companies and debt collectors, agreed to submit his resignation to the Oregon State Bar.   In addition, McGavic & Finney, P.C., the law firm under which McGavic practiced, is to be closed with McGavic’s partner, Kristan Finney, allowed to continue to practice, but with restrictions under a stipulated agreement with the Oregon AG’s office.  McGavic will also pay a $70,000.00 fine.

Mc Gavic & Finney’s  collection activity generated more than 90 complaints to the Attorney General’s office.  Those complaints were entirely separate than the complaints made to the Oregon State Bar about how McGavic collected debts for national creditors and national debt collectors and the news reports have been on websites ranging from consumer forums to the ABA Journal Daily News

Mr. McGavic made headlines back in 2008 after settling a series of lawsuits alleging that his office had violated the Fair Debt Collection Practices Act when the Oregon State Bar began an investigation after reports began being made to the bar regarding the office’s actions.  In addition, Bud Hibbs of www.ripoffreport.com had posted complaints since 2007.

According to the press release:

McGavic & Finney specialized in representing national debt collectors that buy defaulted consumer obligations in massive quantities on the secondary market ? often for pennies on the dollar.

Consumer complaints filed with the Oregon Department of Justice accused McGavic of systematically ignoring debtor protections and rights afforded under the Oregon and Federal Debt Collection Protection Acts. For example, McGavic allegedly misidentified or purposefully confused the identity of creditors in documentation to delay consumers’ response and thus increase fees and interest payable to McGavic and his clients.

Notices issued by McGavic allegedly omitted specific information related to the amount of the defaulted debt and failed to provide proper verification of debts when requested by consumers. Similarly, McGavic allegedly repeatedly called debtors who had requested in writing not to be called.

The Department of Justice’s investigation also uncovered McGavic’s pattern of falsifying fee affidavits in Motions for Default Judgments by claiming services he did not perform. In addition, McGavic allegedly provided his office staff with a schedule to be used to arbitrarily increase the fees claimed – depending on the amount of money claimed or the venue of the action.

The question remaining at the end of the day?   What happens to those fraudulently obtained judgments?   What help will be given to consumers who have been victimized by these predatory practices and who perhaps lost money illegally–with the money long ago paid to the debt collection companies or debt buyers?

And the moral of the story?   Little voices can make a big noise when joining together.   If you have been the victim of abuse by a debt collection or a law firm representing a creditor, debt collector, or a debt buyer, call the Attorney General Consumer Protection Division in your state and complain until your voice is heard.

 

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Full post as published by Credit Law Network on March 23, 2011 (boomark / email).