Apex Law Group Announces Settlements for FDCPA Violations

Maryland-based Apex Law Group LLC announced today a successful settlement resulting from a lawsuit against a debt collector who allegedly violated the Fair Debt Collection Practices Act.

A Texas resident, who was enrolled in a debt settlement program, was referred to an Apex affiliate attorney in Houston, Texas after she reported receiving threatening phone calls from a debt collector. The collector threatened lawsuits, wage garnishment and even arrest if she didn’t pay her debt. The collector also left harassing and demeaning messages on her voicemail, which is prohibited under the FDCPA.

After the Houston attorney filed a lawsuit against the debt collector, the collector offered the client an out-of-court monetary settlement that included her attorney’s legal fees and expenses.

“Unfortunately, debt collectors are increasing their use of illegal tactics to harass financially struggling debtors,” said Apex’s lead attorney Dharma Naik. “While collectors have a legal right to pursue legitimate debts, they do not have the right to harass, abuse or make false statements as they attempt to collect on a debt.”

In the last six months, Apex affiliate attorneys settled two similar cases for clients who were victimized by debt collectors. Each client received monetary settlements that included the attorneys’ legal fees and expenses.

In this year’s annual report on FDPCA compliance, which the FTC released in April, the number of complaints about third party debt collectors increased 14 percent to 66,627 complaints in 2005 (http://www.ftc.gov/os/2006/04/P0648042006FDCPAReport.pdf). Complaints against debt collectors represent 19.1 percent of all complaints the FTC received last year – the largest share of complaints of any industry.

The most common complaints, accounting for 42.7 percent, involved collectors misrepresenting the character, amount or legal status of a debt and demanding a larger payment through unauthorized interest, fees or expenses. As a response, the FTC continues to propose legislation requiring collectors to itemize their fees and other charges upon request.

Complaints about harassing and repetitive phone calls accounted for 21.5 percent. Threats of dire consequences made up 9.6 percent, impermissible calls to customer’s workplace made up 6.3 percent and revealing debt to third parties made up 4.5 percent of the FDPCA-related complaints.

About Apex Law Group:

Apex Law Group LLC, is a law firm based in Columbia, Maryland, that offers legal services in the areas of consumer bankruptcy, civil litigation and consumer law. For more information, please contact Dharma Naik, Esq. at 1-877-502-2739 or dharma@apexlawgroup.com or visit Apex’s website at www.apexlawgroup.com.

Apex Law Group LLC makes no representation that it can obtain the same results as reported in this press release in other legal matters. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Dharma Naik, Esq., is licensed in the States of Maryland and California only.