Skip to main content
(678) 915-2634 Contact Us
Georgia and Abusive Debt Collector Agree to 4 3 Million Settlement Atlanta, GA

Personal Attention & Experience Since 1971 Family-Owned, Family Focused

Client Reviews

Georgia and Abusive Debt Collector Agree to $4.3 Million Settlement

Although creditors are allowed to take certain steps to collect on a debt, there are limits to what they can do. There are both federal and state laws designed to protect people in Georgia from aggressive debt collection practices. As one company recently found out, the price of breaking those laws can be expensive.

Collection Company Broke Both Federal and State Laws

Late last year, Nelson, Hirsch & Associates, a debt collection company that pursued debt that had been written off by original creditors, sometimes known as “zombie debt”, signed an agreement with the Governor’s Office of Consumer Protection (OCP) agreeing to shut down operations in Georgia and abstain from any debt collection within the state for a period of five years. The settlement is the latest in the state’s efforts to stop creditor harassment.

The OCP’s investigation into the company found frequent and flagrant violations of both the federal Fair Debt Collection Practices Act (FDCPA) as well as the Georgia Fair Business Practices Act (GFBPA). These violations included:

  • Threatening to arrest people, charge them with fraud and put them in jail for failing to pay their debt.
  • Threatening to call employers to have their wages garnished
  • Threatening the family members of the person owing the debt
  • Not disclosing that they were debt collectors attempting to collect a debt
  • Denying people’s requests to send proof of the debt that was owed
  • Collecting more than what was owed or authorized
  • Making misrepresentations to people that the collector was associated with a law firm or that callers were actually fraud investigators
  • Repeatedly calling people after the people requested that they stop
  • Continuously calling people up to 50 times a day
  • Calling people at unreasonable hours (before 8:00 am or after 9:00 pm)
  • Calling individuals at work despite being told that the individuals were not permitted to receive calls at work
  • Using abusive or harassing language when communicating with people

Any of these practices, whether they are done individually or collectively are illegal.

Settlement Exceeds $4.3 Million

The OCP wants to make it clear that it is not okay to threaten any individual who owes a debt. As part of its stipulated agreement, Nelson, Hirsch and Associates had to agree to stop pursuing 5,809 collection accounts, whose value was believed to be $4,307,658. In addition, the company had to pay OCP $24,000 to reimburse it for its legal and investigative costs and had to pay a civil penalty of $26,000.

In a written press release, the OCP’s Administrator, John Sours, said, “We are sending a strong and clear message that this kind of abuse and harassment of consumers, and the egregious disregard for the law that these practices typify will not be tolerated.”

Options for Stopping Collection Calls

Calls from creditors are stressful. One of the hardest things about them is that it is difficult to know what they can do and what they can’t do. Even when debt collectors aren’t breaking the law, a call from them can be very scary. Opening the mail can be just as bad. Creditors often use letters to communicate that a lawsuit is just around the corner.

Many people find it helpful to speak with a Gainesville consumer bankruptcy attorney to review their options. Both Chapter 7 and Chapter 13 bankruptcies are an effective means of stopping collection calls. Each type of bankruptcy has unique advantages. Whether a person needs a fresh start or simply some breathing room to get their affairs in order, bankruptcy offers solid protection for individuals wrestling with debt.

Unlike debt settlement or consolidation companies, bankruptcy has a feature that will provide an immediate stop to debt collection companies, the automatic stay. The automatic stay in bankruptcy is an injunction that goes into effect as soon as people file their Chapter 7 or Chapter 13 bankruptcy. The automatic stay blocks collection agencies from calling you or sending you any letters. It is the most powerful tool available for relieving the stress caused by debt collectors.

Bankruptcy is a process. A Georgia bankruptcy attorney will not only help you determine the best bankruptcy for you, but will also guide you through the process, giving you tools to avoid creditor calls. If you are tired of debt collectors and looking for relief, you should speak with an experienced bankruptcy lawyer as soon as possible to discuss the solutions available to you.

First Free
Appointment




    DisclaimerPrivacy Policy

    I have read the Disclaimer and Privacy Policy

    Our Client Reviews

    Jamie L. Gingold, PC
    5.0 / 5.0

    Based on 28 reviews

    Jack L.

    They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

    Karen B.

    Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

    Lyla B.

    I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

    Julie T.

    Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

    Julie T.

    I contacted getting old and getting old regarding some old tax debt and credit card debt that I needed to address and had been putting off. miss Irving in the office was very very nice and put me at ease. I met with Jaime Gingold. She was very nice and explained the procedure to me and what would be left owing to the Internal Revenue Service and the State of Georgia after my case was done. My case has now been completed and I am on my way to a new start. Thank you Gingold and Gingold for all of your help.

    Anna T.

    Amazing! Outstanding!! They went over and beyond..I would recommend them to anyone needing a lawyer!!

    Write a review