Asset Protection Law Journal : Asset Protection Lawyer & Attorney : Kenneth J. Laino : Schneider Smeltz Ranney & LaFond Law Firm : Trusts, Estate Planning

According to a recent article in The Cleveland Plain Dealer, the Cleveland Public Library has hired a national collection firm to recover fines and overdue items.  Director Felton Thomas reported that the agency had collected $550,000 in fines and $2.6 million worth of outstanding material; and fees were less than $90,000.  So it would seem that using an outside agency for collection will continue.  Other libraries have taken similar action.

My point in bringing this article to your attention is not simply the fact that libraries are now using outside collection agencies.  The main point is that almost all creditors seem to be getting more and more aggressive in their collection efforts.  For example, real estate developers and business owners in the past could reasonably assume that a bank would not immediately call a loan if you failed to meet certain financial covenants.  That is simply no longer the case.  Having been burned by so many bad real estate loans, banks and other lenders are not going to be as lenient as they used to be if any problems develop with your loan.

Stated another way --- if even libraries are using collection agencies, you can imagine what might happen with your business or real estate loan if your circumstances suddenly change.  All of this makes asset protection planning more important than it was in the past.

• Email This
• Print
• Comments
• Trackbacks

The Ohio Attorney General's office recently settled a lawsuit filed against Allied Interstate, one of the country's largest debt collectors.  According to the Columbus Dispatch, Allied Interstate agreed to pay $150,000 and make changes in its practices.  Allied faced two dozen allegations of misconduct after a state investigation -- for instance, calling before 8:00 a.m. and after 9:00 p.m., and even making unauthorized withdrawals from bank accounts.  It was also accused of calling people's employers, despite being asked to stop; making idle threats; and repeatedly calling the wrong people.

This settlement came shortly after a $350,000 agreement reached in August between the State of Ohio and Credit Bureau Collection Services, which has its headquarters in Columbus.  According to the Columbus Dispatch, Allied agreed last year to pay $1.75 million to settle a similar federal probe; and Credit Bureau Collection Services agreed to pay $1.1 million.  The Ohio Attorney General has reached settlements with other collection firms as well.

If you feel you have been the victim of an unlawful debt collection practice, you should contact your state attorney general or other state consumer protection agency.  Debt collection is of course perfectly valid -- as long as it is conducted in accordance with applicable law.

• Email This
• Print
• Comments (1)
• Trackbacks