Abusive debt collectors sent a loud (and expensive) message
Filed under: Ripoffs and Scams
This is one of those stories that you have to read twice to fully comprehend. On the first pass, you might find yourself saying "no way!" And then on the second pass you realize it is (sadly) true.
Delores Maddux had a credit card with CitiFinancial, and her account was eventually sold to Merchants Retail Credit Association (MRCA). The company demanded $10,000 from Maddux (and her husband, and her daughter), which she believed was an incorrect amount, so she disputed the amount owed.
According to Caveat Emptor: When she disputed the amount, MRCA debt collectors called her lazy, fat, black, inbred, pathetic, and stupid. The MRCA debt collector threatened to tell everyone Dolores Maddux knew that she was a deadbeat. The debt collectors from MRCA laughed at her and threatened to ruin her life and Gilbert Maddux's life. They called her a liar, a thief, and verbally abused her and her husband, daughter, and others, telling the people they called that Dolores Maddux was a deadbeat, a thief, a liar, etc.
The threats and harassment carried on, including vulgarities and racial slurs. So one day, Delores had enough and hired an attorney. The case has concluded with the court awarding Delores Maddux $616,971 plus $237,419 in attorney fees and costs. I wonder if that sends a message?
I believe consumers should pay their debts as agreed. I understand the necessity of "debt collectors," but I also understand that they need to play by the rules. There is no excuse for this kind of behavior, and I'm sure most of us have heard our fair share of harassment stories when it comes to collection agencies.
It is suggested that this type of behavior on the part of debt collectors happens more often than we realize. The problem is that those who are in debt don't usually have the resources to hire an attorney to stand up for their rights. Hopefully, the publicity surrounding this case will give more people the courage to assert their rights with the help of consumer advocates.
Forensic accountant Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations through her company, Sequence Inc. Forensic Accounting. The Association of Certified Fraud Examiners honored Tracy as the 2007 winner of the prestigious Hubbard Award and her first book, Essentials of Corporate Fraud, will be on bookshelves in March 2008.
Delores Maddux had a credit card with CitiFinancial, and her account was eventually sold to Merchants Retail Credit Association (MRCA). The company demanded $10,000 from Maddux (and her husband, and her daughter), which she believed was an incorrect amount, so she disputed the amount owed.
According to Caveat Emptor: When she disputed the amount, MRCA debt collectors called her lazy, fat, black, inbred, pathetic, and stupid. The MRCA debt collector threatened to tell everyone Dolores Maddux knew that she was a deadbeat. The debt collectors from MRCA laughed at her and threatened to ruin her life and Gilbert Maddux's life. They called her a liar, a thief, and verbally abused her and her husband, daughter, and others, telling the people they called that Dolores Maddux was a deadbeat, a thief, a liar, etc.
The threats and harassment carried on, including vulgarities and racial slurs. So one day, Delores had enough and hired an attorney. The case has concluded with the court awarding Delores Maddux $616,971 plus $237,419 in attorney fees and costs. I wonder if that sends a message?
I believe consumers should pay their debts as agreed. I understand the necessity of "debt collectors," but I also understand that they need to play by the rules. There is no excuse for this kind of behavior, and I'm sure most of us have heard our fair share of harassment stories when it comes to collection agencies.
It is suggested that this type of behavior on the part of debt collectors happens more often than we realize. The problem is that those who are in debt don't usually have the resources to hire an attorney to stand up for their rights. Hopefully, the publicity surrounding this case will give more people the courage to assert their rights with the help of consumer advocates.
Forensic accountant Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations through her company, Sequence Inc. Forensic Accounting. The Association of Certified Fraud Examiners honored Tracy as the 2007 winner of the prestigious Hubbard Award and her first book, Essentials of Corporate Fraud, will be on bookshelves in March 2008.
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Reader Comments (Page 1 of 1)
12-19-2007 @ 2:16PM
David said...
That's crazy! I can't believe that, but I know it has to be true. It's a sad world we live in today.
Reply
12-19-2007 @ 3:09PM
Jon S said...
lol
Reply
12-20-2007 @ 2:54AM
media wiz said...
"Go ahead, make my day!" Do you think that 3/4 million dollars worth of whoopass changed their tactics?
Reply
12-20-2007 @ 9:07AM
vickie said...
This happened to me. I am newly divorced and have an abundance of debt. I had a collection agency to call my brother in texas he had ran his credit and mind you this guy is 61. He called my niece and asked questions about my 18 year old daughter who is in her first year of college. He claimed i was using her social security number and called me a thief. I am attending college as well he even knew about my student loans and said I should pay my bills with my student loan. I was alittle aftraid at first wondering who knew so much about me and my family. Now I realize this really happens. BEWARE!!! What about those real crooks out there, unfortunately I have to rebuild and try to figure out how to pay off my bills!
Reply
12-25-2007 @ 5:41AM
Mark Widerstrom said...
These Companies do anything SO they can to MAKE YOU PAY even make you sound like a Criminal.
Your OK you have more power than a collection bottom feeder. Tell them to take a hike and dispute any amount you want makes them close the file and send it back. Course 2 I had one of those deadbeat cards,threw it away and then later said DARN COULD HAVE SUED them for SLANDER.
Mark
Reply
12-27-2007 @ 1:28PM
Nancy Kelly said...
Man have I been there lately-my mortgage co made an accounting mistake 4 years ago, and just caught it now, and they are seeking repayment plus penalty and late fees......until I have confirmation that the error is theirs , they will get nothing. I notified my states attorney general and am considering litigation........Never let anyone bully you into paying a debt that you dispute!!!!!!!!!
Reply