Debt Lawsuits, Garnishments, False Affidavits of Service on the Rise
April 21, 2010
A good article about consumer debt collection recently appeared in the New York Times: More Struggling Borrowers Face Pay Garnishment.
The article discusses the dramatic rise in debt lawsuits and wage and bank account garnishments. It also discusses as the importance of responding to debt lawsuits.
Most interestingly, it discusses the problem of consumers’ not being properly served with notice of these lawsuits.
I would say this is an epidemic in Maryland. Several times a week I speak to consumers whose court summons paperwork has been left on their front porch or in their mailbox. This does not constitute adequate service.
The process server then submits a false affidavit of service to the court stating that he personally served the defendant or the defendant’s family member.
Unfortunately, many consumers don’t know they can challenge the insufficient service. But, even if the service is thrown out, you can be served again. So, you still have to deal with the underlying lawsuit. Consequently, many consumers don’t challenge the bad service.
But, it seems to be common knowledge in Maryland that certain process servers routinely submit false affidavits of service. It is a mystery why debt collection firms continue to use these process servers.
Consumers who were improperly served should consider whether they can make a motion to the court to quash the bad service. If nothing else, doing so will put the courts on notice that certain debt collection firms routinely use process servers who submit false affidavits.
Have You Been the Target of a Consumer Scam (Phishing, Smishing, Identity Theft, Fraudulent Debt Collection)?
April 29, 2009
Our office hopes to use this blog to warn consumers about financial scams. So, If you are a Maryland or D.C. resident and you have been the target of a financial scam, tell us about it.
Our office has noticed an increase in scammers posing as debt collectors. The scammers’ techniques may include phishing, smishing, other forms of identity theft, and other fraudulent debt collection activities.
For example, the scammer may ask you to fax your financial information to him or her. Or, you may get an email or text message telling you to call a seemingly legitimate 800 number. But, when you call, you may be prompted to enter sensitive information like credit card or ATM card numbers.
If you have been a target and you’d like to share your story, email info@warelawllc.com.
Please note:Â this post is not an offer of legal services or a client solicitation.
Debt Collection / Phishing Scam: “Mr. Ricky Watson” at phone number 1-407-506-0427 wants you to send him money
April 13, 2009
I ran across a new debt collection / phishing scam today.
The scammer, who identifies himself as “Mr. Ricky Watson,” contacts targets by phone and tells them they owe him money. He claims to be calling from phone number 1-407-506-0424 or 1-407-506-0427.
He claims he will “send an officer to arrest you” if you do not fax your banking information to him at fax number 1-407-650-3106.
We called “Mr. Ricky Watson” several times to try to figure out whether he is a legitimate debt collector. Mr. Ricky Watson would not identify the company he works for or the origin of the debt he is trying to collect. At various times, he said he worked for “the government agency,” or “a government legal department” or “a legal firm.”
When I asked which agency or firm he worked for, he demanded to know my name. When I gave him my name, he hung up on me.
When I attempted to call back, I got an outgoing message saying “card balance too low.”
Legitimate debt collectors are willing to tell you the origin of the debts they are trying to collect. By law, they must also tell you what company they work for.
It is illegal for them to say they work for a government agency (unless they do work for such an agency), and it is illegal for them to tell you they will have you arrested if you refuse to pay.
Do not send Mr. Ricky Watson your banking information, and do not give him any information over the phone.
If Mr. Watson is a legitimate debt collector, he should send you a written notice of the debt you owe. By law, this notice should be sent within 5 days of the first phone call.
If you receive a notice explaining the origin of the debt, then you can further evaluate whether the debt is legitimate. But, based on our office’s conversations with Mr. Watson, he does not appear to be a legitimate debt collector.
New Phishing / Smishing Scam: Text message tells targets to call 1-202-729-8214, says “your ATM card has been suspended.”
December 17, 2008
There seems to be a new phishing / smishing scam going around.
How the scam works:
(1) People receive a text message reading as follows:
“This is an automated message from Bank-Fund Staff F.C.U.. Your ATM card has been suspended. To reactivate call urgent at 1-202-729-8214.”
(2) Upon calling this number, targets are prompted by an automated recording to enter their bank card number, expiration date, and PIN number.
Who has been affected?
This scam seems to be affecting primarily Sprint cell phone customers. But, even if you are not a Sprint customer, you should still take the precautions described below.
Most targets report that they do not have (and never have had) a Bank Fund Staff Federal Credit Union account. It is unclear why the scammers referenced BFSFCU in their message.
What to do If you receive the scam text message:
- Do not call the 1-202-729-8214 number.
- If you suspect that your bank or credit union card has been affected, call your financial institution directly. Do not use the 1-202-729-8214 number to try to contact your bank or credit union.
- If you do call the 1-202-729-8214 number, DO NOT ENTER YOUR BANK CARD INFORMATION.
- Report the scam text message and / or file a complaint with:
- the Attorney General of your state of residence,
- your local police department,
- your cell phone provider, and
- the Federal Trade Commission.
Link to a Bank Fund Staff Federal Credit Union news alert discussing the scam.
You can also learn more about phishing scams at this Federal Trade Commission link.
West Virginia Attorney General Reports New Debt Collector Scam
August 22, 2008
West Virginia Attorney General Norman Googel warns consumers about the following debt collector scam.
Scammers repeatedly call consumers’ residences and workplaces and attempt to collect on non-existent debts. The scammers use company names such as “U.S. National Bank,” “Federal Investigation Bureau” and “United Legal Processing.”
The scammers have targeted consumers who applied for payday loans online, Googel said.
The scammers also attempt to use legal jargon– some have referred to “downloading affidavits.”
But, perhaps most surprising is the following: one scammer identifies himself as “Denzel Washington.” Another tells consumers he is calling from “Steve Martin’s office.”
If you receive any such calls (or any other calls you suspect are from bogus debt collectors), report them to the office of your state’s Attorney General, the Federal Trade Commission, and / or the Better Business Bureau immediately.
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