By
Kenneth Long on November 10, 2011
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Nelson, Hirsch & Associates violated consumer rights as it aggressively pursued amounts owed by debtors. That was the conclusion of an investigation by the Georgia Office of Consumer Protection. As a result, the debt collector forfeits collection rights on $4.3 million in debt owed by 5,809 debtors.
Results of the investigation found widespread violations of the
Fair Debt Collection Practices Act (FDCPA). Some debtors were called up to 50 times a day, even though the FDCPA clearly prohibits such harassment.
Employers were notified of employees' debts. Debtors were threatened with garnishment. Debtors were also threatened with arrest or imprisonment. Some calls came outside of allowable calling hours (8:00 am to 9:00 pm). Collection agents even misrepresented themselves as law firm agents or fraud investigators.
Owner Tanya Santiago has agreed to shut down operations of Nelson, Hirsch & Associates. Additionally, she cannot engage in debt collection activities for five years.
John Sours, Administrator of the Governor's Office of Consumer Protection released the following statement:
“We are sending a strong and clear message that this kind of abuse and harassment of consumers, and the egregious disregard for the law that these practices typify will not be tolerated.”
Affected debtors may or may not be off the hook. It is unclear from the settlement whether the company is prohibited from selling the collection rights of those debts to an unaffiliated debt collector. Also unclear is if the company would have any remaining assets to be used to settle
FDCPA lawsuits filed by one or more of its 5,809 debtors.