Intellectual Property Law

When Paula Newland fell behind on her payments in early January on her 2005 Chevy Impala, the last thing she wanted to do is share that information on her Myspace profile.

But that's exactly what her debt collectors did, the Edwardsburg, Michigan resident charges in a civil lawsuit accusing Assets Recovered and Advanced Equity of violating collections law by harassing her online, on the phone and in person. And she wants a minimum of $25,000 for the alleged violations of Michigan law.

Thanks in part to the post on her Myspace page, Newland suffered "damage to her business and community reputation, extreme mental distress, aggravation, humiliation and embarrassment," according to her complaint (.pdf) filed in Michigan state court on March 23.

Under most state laws, debt collectors may not publicize a debt or even tell a debtor's friends, family members or work associates about a debt in order to shame a person into paying. They also must refrain from using abusive or oppressing methods, and generally have to stop calling one's home or work after being asked to communicate in writing.

Via Courthouse News

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