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General News    H3'ed 4/11/11

Debt Collectors Are Going After Kids' Lunch Money

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Message Roger Shuler

In 2005, lead plaintiff Kristy Schwarm filed a class action against the company and its founder, Henry Craighead, for violations of the Fair Debt Collection Practices Act. The defendants' demand letters to debtors claimed that the district attorney was investigating a criminal complaint, and the consumer might be arrested if he did not pay various fees, according to Schwarm's complaint.

Ah yes, threatening an alleged debtor with arrest is a classic chestnut from the debt-collection game. Another is threatening to sell your "house on the courthouse steps," a technique we experienced in our dealings with NCO and Ingram and Associates.

Even if the Hazelton, Pennsylvania, case has a happy ending, it looks like we will have no shortage of contestants for our Lowest of the Low Award.

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I live in Birmingham, Alabama, and work in higher education. I became interested in justice-related issues after experiencing gross judicial corruption in Alabama state courts. This corruption has a strong political component. The corrupt judges are (more...)
 
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