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Debt collection agency shut down for harassing consumers

Debt collection agencies doing business under the names Central Resource Management, Final Claims Asset Locators, Final Control Asset Locators, Interchange Payment Solutions, Next Step Services, Portfolio Asset Assurance, Silverbay Services, and Teleport, all run by Tobias Boyland were shut down by Attorney General Andrew M. Cuomo for harassing consumers in violation of federal and state laws.

An investigation conducted by Cuomo’s office revealed that the debt collectors regularly demanded payment for non-existent debts and substantially inflated the amount owed on an actual debt.  Illegally using fake law enforcement identities, the debt collectors coerced consumers into agreeing to make payments.  Intimidated at the prospect of being arrested and humiliated, consumers often authorized withdrawals from their checking accounts and sent money orders to the debt collectors.

In a highly unusual response by regulators, prosecutors charged 12 rogue debt collectors with grand larceny.  According to a Buffalo newspaper report, the defendants are the first instance of employees being arrested and charged with crimes for overly aggressive collection tactics.

State Supreme Court Justice Paula L. Feroleto issued orders barring Boyland and 3 of his associates from ever again working in the debt collection profession in New York.

One victimized consumer received a voicemail threatening to have the county sheriff’s department serve a warrant for charges at his job, unless he contacted the collection agency that same day.

Another consumer received a voicemail from a debt collector threatening to have the victim arrested at her job and then proceeded to warn her to find a place for her kids to stay and lock up her house because she would be in jail.

Yet, another victim taped a live conversation with a debt collector who threatened to have the district attorney “pick her up” for violating the law.

The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from impersonating law enforcement, threatening to have a consumer arrested,  accusing the consumer of committing a crime.

If you are being harassed by debt collectors, in violation of the FDCPA, you may be entitled to compensation.  Please call Consumer Protection Attorney, Todd M. Friedman at 877-449-8898 for a free consultation