Accounts Receivable Management Featured Article

Woman Sues Law Firm for Threatening to Sue Her

August 28, 2012

Despite research that suggests otherwise, media tends to depict the debt collection industry as villainous. But to be fair, it seems the public would prefer to read the horror stories of the minority in the industry that engage in vile debt collection practices than about the industry’s philanthropic feats like paying for a vet’s college tuition.

The best debt collection stories typically play out like epic folklore, where the debtor takes Goliath to court and in a moment of sweet justice, gains from the litigation more than the amount of debt owed. This story, of a woman in Texas who is suing a law firm for allegedly violating the Fair Debt Collection Practices Act, could be one such case.

According to a Texas news publication, Christy Galan of Wylie, Texas is suing AHN Regent for failing to adhere to the Fair Debt Collection Practices Act. Among her accusations against the Texas law firm, is that the agency sent letters and left voice messages on her cell attempting to collect the debt she owed them. But what AHN Regent did that directly violated the act was threaten to sue Galan.

Galan believes that the agency’s threat to file a suit was really a deceptive means of attempting to collect. Additionally, there is evidence to suggest that the callers were not forthcoming about who they were or the purpose of their call. Naturally, Galan would like the defendants to compensate for the court costs and attorney’s fees in addition to paying for statutory damages.

The most publicized lawsuit of any debt collection agency to date is the one against Accretive Health in Michigan. Accretive has already lost $2.5 million in court costs for allegations that the agency infiltrated hospitals with agents disguised as hospital employees in order to collect from patients at bedside.



Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.




Edited by Brooke Neuman

Article comments powered by Disqus

Related Accounts Receivable Management Articles

Pew Charitable Trust Releases Analysis of Military Financial Institutions

The Pew Charitable Trusts, a global not-for-profit that completes global research and analyzes public policy, announced near the end of October that it had completed its first evaluation of checking account practices within banks and credit unions that provide services for customers at military bases. Overall, it analyzed 18 of the 31 Association of Military Banks of America banks and 111 of the 134 Defense Credit Union Council credit unions at military sites. [ Read More ]
10/30/2014

Accounting Firms Take Note: Five Trends to Hit the Industry

A new report has emerged that makes one thing clear: the accounting industry has about five clear trends about to hit. From the largest of corporate accounting ventures to the simplest, key industry trends are set to arrive and pose opportunity for those who pay attention, and hazard for those that don't. [ Read More ]
10/29/2014

Accounting Firm Receives $100,000 in Consulting through University Competition

The Harvard vs. MIT Case Competition takes place every year to pit graduate students and postdoctoral fellows against each other to solve a real-life business challenge. Students from both universities generate answers to problems that affect an actual business; this year's chosen business was the accounting firm, Cloudsource Accounting. [ Read More ]
10/29/2014

Clayco Selects DataServ to Automate, Streamline AP Process

Clayco Inc., a full-service real estate, architecture, engineering, design-build and construction firm, has selected DataServ for accounts payable (AP) automation. [ Read More ]
10/24/2014
FREE Accounts Receivable Management enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!