70.2K

Verified Solution

Link Copied!

Q Search this course Analysis 44.1: Identifying the Facts & Issues Check My Work Fair Debt-Collection Practices Keith Richardson was an employment lowyer looking to make some money without the headaches of practicing law. He formed Debt Recovery, Inc., which (written on accounts with insulficent funds) with an estimated face value of about $348 million, for pennies owed and not suffer a total loss. This also made Debt Recovery the new creditor on those checks, and the company aggressively falsely accuse the debtors of being criminals and to threaten them with arrest and prosecution. The employees contacted the debtors numerous times in a short period. They used abusive language, refering to drawers as "deadbeats, "thieves," and "idiots. In approximatehy ts efforts. The Federal Trade Commission filed a suit in a federal district court against Debt Recovery and Richardson, alleging violations of collector," coillecting "debts,"within the meaning of the FDCPA and were its actions legal on the dollar. This allowed creditors who had been unable to collect to recover some of the debt pursued the debtors. Richardson trained Debt Recovery's employees to amily members and used "saturation phoning-phoning a debtor two yoar the Fair s, Debt Recovery netted more than $10.2 milion from Debt Practices Act (FDCPA), Was Debt Recovery a "debt . The Fair Debt Collection Practices Act attempts to prevent abuses by Select 2. Specialized Select setet-Owho regularty atter ipt to collect debts on behalf of sormorie de are oonsd reddebt colloctors under tho PCCP. 3.Creditors elestcovered by the act unless they cause debtors to believe they are collection agendies . Richardson Selectan attorney who regularty attempts to collect debts on behalf of someone ese. 5. Debt Recovery(Selectset up as a debtoolection agency. 6. Debt Recovery Seloctcovered by the FDCPA

Answer & Explanation Solved by verified expert

See Answer