Kelth Richardson was an employment lawyer looking to make some money without the headaches of practicing law. He formed Debt Recovery, Inc., which bought more than 2.2 million uncollectible checks (written on accounts with insufficient funds) with an estimated face value of about $348 million, for pennies on the doller. This allowed creditors who had been unable to collect to recover some of the debt owed and not suffer a total loss. This also made Debt Recovery the new creditor on those checks, and the company aggressively pursued the debtors. Richardson trained Debt Recovery's employees to falsely accuse the debtors of being criminals and to threaten them with arrest and prosecution. The employees contacted the debtors family members and used saturation phoning- phoring a debtor numerous times in a short period. They used abusive language, referring to drawers as "deadbeats," "thieves," and "idots." In approximately two years, Debt Recovery netted more than $10.2 million its efforts. The Federal Trade Commission filed a suit in a federal district court against Debt Recovery and Richardson, alleging violations of the Fair Debt Practices Act (FDCPA). Was Debt Recovery a "debt collector," collecting "debts," within the meaning of the FDCPA and were its actions legal? . The Fair Debt Collection Practices Act attempts to prevent abuses by Sefect and Selert who regularly attempt to collect debts on behalf of someone aise are considered debt colectors under the FOCPA 3. Creditons Setert covered by the act unless they cause debtors to beleve they are collection agencles 4. Richardson efectan attorney who regularly attempts to collect debts on behalf of someone ee 5. Debk Recovery Celest set up as a debt-collection agency 6. Debt Recovery Selectcovered by the FDCPA 7. If Debt Recovery was covered by the FDCPA, iR could not legally contact the debtor at the debtor's place of employment If the objects Kelth Richardson was an employment lawyer looking to make some money without the headaches of practicing law. He formed Debt Recovery, Inc., which bought more than 2.2 million uncollectible checks (written on accounts with insufficient funds) with an estimated face value of about $348 million, for pennies on the doller. This allowed creditors who had been unable to collect to recover some of the debt owed and not suffer a total loss. This also made Debt Recovery the new creditor on those checks, and the company aggressively pursued the debtors. Richardson trained Debt Recovery's employees to falsely accuse the debtors of being criminals and to threaten them with arrest and prosecution. The employees contacted the debtors family members and used saturation phoning- phoring a debtor numerous times in a short period. They used abusive language, referring to drawers as "deadbeats," "thieves," and "idots." In approximately two years, Debt Recovery netted more than $10.2 million its efforts. The Federal Trade Commission filed a suit in a federal district court against Debt Recovery and Richardson, alleging violations of the Fair Debt Practices Act (FDCPA). Was Debt Recovery a "debt collector," collecting "debts," within the meaning of the FDCPA and were its actions legal? . The Fair Debt Collection Practices Act attempts to prevent abuses by Sefect and Selert who regularly attempt to collect debts on behalf of someone aise are considered debt colectors under the FOCPA 3. Creditons Setert covered by the act unless they cause debtors to beleve they are collection agencles 4. Richardson efectan attorney who regularly attempts to collect debts on behalf of someone ee 5. Debk Recovery Celest set up as a debt-collection agency 6. Debt Recovery Selectcovered by the FDCPA 7. If Debt Recovery was covered by the FDCPA, iR could not legally contact the debtor at the debtor's place of employment If the objects
