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.



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Edited by Brooke Neuman

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