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Friday, May 2, 2014
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A Lockport collection agency was shut down Thursday by the state's attorney general, and the owner of that agency has agreed to pay a $10,000 fine.
Swanson Walker & Associates was the source of dozens of complaints to Attorney General Eric Schneiderman's office — and at least 70 to the Better Business Bureau over the past 16 months — for the strong-arm tactics the agency used when attempting to collect repayments.
“Attempting to get out of debt is a stressful and overwhelming process that countless consumers struggle with every day,” Schneiderman said. “To threaten and bully these individuals is unacceptable and wrong, and my office will keep fighting to hold those who employ these tactics accountable.”
According to complaints, Swanson debt collectors repeatedly and persistently violated the law by improperly calling consumers at their places of employment, improperly accusing consumers of check fraud and violations of the penal law and threatening consumers with arrest or imprisonment, falsely representing that a lawsuit had been, or would be filed, improperly disclosing consumer debts to third parties, and improperly threatening to seize a consumer's property, freeze bank accounts and garnish wages.
Some consumers who filed complaints with the Better Business Bureau said Swanson Walker & Associates representatives threatened warrants, court action and summonses. One woman said her mother was called about a debt that was already paid off, and the caller said unless she could prove it, there would be a “warrant” out for her. Another man who filed a complaint said a representative called him and threatened him with “legal papers” over an old credit card. He settled the debt with the company but the company attempted to take more money out of his account.
Swanson also maintained a website that was replete with false representations, according to the attorney general's office. Those claims included several references to litigating collections cases. Swanson never litigated a case, employed or retained an attorney, and never filed a lawsuit or obtained a judgment against a client. Their website has also been shut down.
Under the Fair Debt Collection Practices Act, creditors and third party collectors may not use false, deceptive, or misleading representations or means; harass, oppress, or abuse any person while seeking payment; or use any false statements or engage in unfair practices.
“We work to educate consumers about their rights, letting them know collection agencies are not allowed to use harassing or threatening tactics; they may not use obscene or profane language, or threaten consumers in any way,” said Warren Clark, President of BBB serving Upstate New York.
BBB investigations work is often shared with government and legal agencies that can support legal proceedings and assist in the closure of some businesses, as was the instance in the Swanson case. FBI, FTC, Attorney Generals and the US Postal Inspectors have all engaged in BBB investigations' work.
Tips for dealing with harassing or intimidating calls from collections agencies can be found on the BBB website. Their page for Swanson Walker & Associates, which details many of the complaints they received, can be found here.
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| New York Attorney General Eric Schneiderman |
Swanson Walker & Associates was the source of dozens of complaints to Attorney General Eric Schneiderman's office — and at least 70 to the Better Business Bureau over the past 16 months — for the strong-arm tactics the agency used when attempting to collect repayments.
“Attempting to get out of debt is a stressful and overwhelming process that countless consumers struggle with every day,” Schneiderman said. “To threaten and bully these individuals is unacceptable and wrong, and my office will keep fighting to hold those who employ these tactics accountable.”
According to complaints, Swanson debt collectors repeatedly and persistently violated the law by improperly calling consumers at their places of employment, improperly accusing consumers of check fraud and violations of the penal law and threatening consumers with arrest or imprisonment, falsely representing that a lawsuit had been, or would be filed, improperly disclosing consumer debts to third parties, and improperly threatening to seize a consumer's property, freeze bank accounts and garnish wages.
Some consumers who filed complaints with the Better Business Bureau said Swanson Walker & Associates representatives threatened warrants, court action and summonses. One woman said her mother was called about a debt that was already paid off, and the caller said unless she could prove it, there would be a “warrant” out for her. Another man who filed a complaint said a representative called him and threatened him with “legal papers” over an old credit card. He settled the debt with the company but the company attempted to take more money out of his account.
Swanson also maintained a website that was replete with false representations, according to the attorney general's office. Those claims included several references to litigating collections cases. Swanson never litigated a case, employed or retained an attorney, and never filed a lawsuit or obtained a judgment against a client. Their website has also been shut down.
Under the Fair Debt Collection Practices Act, creditors and third party collectors may not use false, deceptive, or misleading representations or means; harass, oppress, or abuse any person while seeking payment; or use any false statements or engage in unfair practices.
“We work to educate consumers about their rights, letting them know collection agencies are not allowed to use harassing or threatening tactics; they may not use obscene or profane language, or threaten consumers in any way,” said Warren Clark, President of BBB serving Upstate New York.
BBB investigations work is often shared with government and legal agencies that can support legal proceedings and assist in the closure of some businesses, as was the instance in the Swanson case. FBI, FTC, Attorney Generals and the US Postal Inspectors have all engaged in BBB investigations' work.
Tips for dealing with harassing or intimidating calls from collections agencies can be found on the BBB website. Their page for Swanson Walker & Associates, which details many of the complaints they received, can be found here.
Follow us by email for daily updates of all our stories delivered straight to your inbox.
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