Attorney Sergei Lemberg is challenging the characterization of fair debt attorneys published last week in a Denver Post article with the headline "Consumers Dealing with Debt Collectors Become Stuck in a Vicious Cycle of Lawsuits."
He singles out a part of the story that states, "Some say the Fair Debt Collection Practices Act (FDCPA) has morphed into little more than fodder for lawsuit mills cranking out hundreds of cases yearly - thousands nationally - enriching the lawyers filing them and minimally helping the consumers for whom the laws were written."
Lemberg asserts that this unfairly singles out consumer attorneys as the beneficiaries of the FDCPA while failing to address the systemic problems of the collection industry.
"The other side of the story is that collection agencies cut costs with 'attorney mils' and 'lawsuit mills,' bypassing traditional collection methods and abusing the taxpayer-funded court system to get judgments against consumers - often without ever notifying the consumer that he's being sued," he said.
Lemberg, the second most active attorney targeting collectors and creditors in 2010,
"As a fair debt attorney, I witness debt collectors routinely flouting the law, intimidating, threatening, and harassing consumers," he said. "As a result, consumer complaints to the Federal Trade Commission regarding illegal collection practices are at an all-time high."
Lemberg feels the story hit the mark in one area: calling attention to the fact that the FDCPA allows only $1,000 in damages for the consumer.
Adding that the amount hasn't increased since the law was enacted in the late 1970s, Lemberg noted, "The FDCPA needs to be amended to raise the amount of damages - something that Senator Al Franken proposed in the last Congress. Right now, debt collectors play a numbers game, and count on getting away with bad behavior more often than not. FDCPA penalties? They're just the cost of doing business."
Lemberg says that the foundation of the FDCPA is the notion that consumers deserve dignity and respect, and that debt collectors must play by the rules. He concluded, "The bad players in the debt collection industry can only be reined in if someone holds them accountable. Consumer attorneys who fight for the little guy should be commended, not demonized."
Collections & Credit Risk wants to know what you think about Lemberg's remarks. Please contact Darren Waggoner at 815.463.9008 or darren.waggoner@sourcemedia.com.
