Debt collection activities can cause great stress and challenges for Oregon consumers. Credit card companies or other businesses can aggressively pursue debtors who cannot afford minimum payments or who are behind on some bills. Many people who face severe creditor harassment may not always know how to get help with either the collection actions or the debts involved.

This situation is not unique to Oregonians as consumers all around the nation can be subject to the efforts of debt collectors. Thousands of residents in New York even had unlawful judgments lodged against them by two different debt collection companies. In all, the judgments amounted to a total of $16 million. Eventually, the consumers found help from the state Attorney General who has recently settled cases with both creditors.

Both of the companies will pay costs and penalties for their unlawful actions. One company will pay $175,000 and the other will pay $300,000. In addition, they have been ordered to cease all further collections activities. The claims associated with the judgments had all been filed outside of the state allowed statute of limitations, making them invalid. Both companies will amend future practices to avoid such situations in the future.

Consumer rights deserve to be protected even in the face of delinquent payments or other financial challenges. Anyone who is struggling with a credit card company or other consumer debt may wish to talk with an attorney to get help. There can be several options available including restructuring debt, filing for bankruptcy or more.

Source: Washington Examiner, “ New York AG reaches settlements with two consumer debt buyers,” May 9, 2014