“This debt collection agency has been harassing my friends and family. They are rude and very very nasty. They have threatened to arrest friends if they don’t cooperate with them. This debt is over eight years old which is past the statute of limitations in my state (PA). They have called my friend’s grandmom and cursed and screamed at her - she is 98 years old.”
“I received a call from Global Asset on 4/10/2007 stating that I was going to be arrested by 10am on 4/11/2007 for a class e felony. She did not even explain what the arrest was for until half way through the conversation. They demanded that I make payment on the account. She went as far as to say that I would serve 10 to 12 months in jail for this. I explained to her that this debt was paid in August of 2000 and she stated that there was a warrant out for my arrest and if I did not settle this debt I would be arrested. I have never been so frightened in my entire life.”
These are just two examples of the types of complaints being sent to the Better Business Bureau regarding several companies that have racked up records of unanswered complaints and serious allegations of abusive collection practices.
In recent months, calls concerning Global Asset Investigations, Worldwide Recovery Services, Worldwide Asset Investigation Services and North American Asset Investigation Bureau (NAAIB) report the use of threats, harassment and intimidation to collect debts ranging from auto loans to credit card loans. According to complaints, all of these companies claim they are working on behalf of Robert Goldstein and Associates. All use Cleveland area addresses.
Consumers report they were threatened with arrest, told a summons had been issued for them and would be served by the sheriff’s office if arrangements were not made immediately to pay a debt and that they were being or would be sued. Several consumers report they requested written documentation of their debt, but never received anything.
Some consumers report they are being contacted in error and have nothing to do with the debt. Most complainants admit they owe the money but are disturbed by the tactics used to collect. One woman reported her debt had been discharged through a personal bankruptcy action.
All complaints remain unanswered by the companies. The BBB has made several attempts to speak to management at these firms and obtain a telephone number for Robert Goldstein and Associates, but parties who answered the calls repeatedly put BBB staff on hold and then terminated the call. The companies use virtual office facilities that provide a business address even though the business may be located elsewhere. The most recent location is in Independence, Ohio. Management at the Independence virtual office facility would not disclose any contact information. A national debt buyer’s trade association had never heard of any of the companies.
“For all we know,” said BBB president, David Weiss, “these abusive collection calls could be coming from prison inmates. The company’s elusiveness and failure to respond to complaints raises serious concerns.”
The BBB has alerted law enforcement officials and is continuing to investigate.
Complaints about collection agencies have jumped at the Better Business Bureau during in recent years. Locally, complaints increased by 52% from 2005 to 2006. Nationally, the BBB saw a 20% increase during that same time period putting collection agencies within the top ten most frequently complained about industries. (
The Fair Debt Collection Practices Act (FDCPA) governs collection agency practices. The FDCPA prohibits abusive, unfair or deceptive debt collection practices. Under the FDCPA, a debt collector may not discuss the debt with anyone other than the consumer and certain other persons, such as the consumer's attorney or spouse; use obscene, abusive, or profane language; or contact a consumer at inconvenient times, such as before 8 a.m. or after 9 p.m. Also, debt collectors may not make false statements, use false company names, or threaten any action they cannot or do not intend to take.
Some collection agencies focus on the collection of very old or time-barred debts. Time-barred debts have passed the statute of limitations (the amount of time allowed to file suit to collect a debt). Each state sets its own statute of limitations. While there is no prohibition on the collection of time-barred debts, the FDCPA must still be followed. In some states, the statute of limitations starts over if the debtor makes a payment on the debt.
One type of collection agency is commonly referred to as “Scavenger” or “junk” debt collectors. These agencies purchase uncollectible, written-off debt for pennies on the dollar and often use aggressive techniques to collect. Tactics reportedly used by scavenger debt collectors include representing themselves as a “litigation firm”, offering to settle immediately or face legal action and other types of intimidation.
The BBB offers this advice:
Ø Know your rights under the Fair Debt Collection Practices Act. A copy of the Act is available at www.ftc.gov.
Ø If you are contacted by telephone, do not immediately provide any personal information (including bank account or credit card account numbers) or acknowledge the debt. Ask for documentation of the debt in writing. Within five days of the first contact with you, the debt collector is required under the FDCPA to send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.
Ø When the debt is paid or settled, ask for confirmation in writing and keep it for your records in case another agency pursues the same debt again.
Ø Contact an attorney or state consumer protection office to determine the statute of limitations for the debt. If the time limit has passed, the debt is no longer collectible. In fact, a payment may start the statute of limitations “clock” again. Ohio has a 15 year statue of limitations on promissory notes and written contracts.
Ø You may write the agency and tell them not to contact you again. They will only be able to contact you to let you know that they are not pursuing your debt any more or that you are subject to legal action.