Even as the economy is recovering from the Great Recession, many Americans are still struggling with debt. Chapter 7 bankruptcy is a viable option for many people to find debt relief, prevent wage garnishments and stop harassment from creditors. Some creditors have become overly aggressive, to the point that the Better Business Bureau Serving Greater Cleveland has received dozens of complaints regarding the collection tactics of LRS Litigation Services.
The company, LRS Litigation Services, has been making threatening phone calls regarding the collection of payday loan debts to consumers across the country. Some of the people receiving calls never took out payday loans, yet they are still being harassed at home and at their place of employment. Because of the widespread problem, the BBB has contacted the Federal Trade Commission about the company and is warning consumer of their rights as outlined in the Fair Debt Collection Practices Act.
For instance, debt collectors are not permitted to call you at your workplace if it is against your employer's policy; simply tell them that you cannot receive calls at work and they are required to stop. You should never be threatened with arrest, nor can a debt collector garnish your wages without a court order. You are also entitled to a written notice disclosing the total amount of money the creditor claims you owe and what steps you should take if you don't believe the amount is correct. If you are being harassed by a creditor who is not complying with the law, you should contact the BBB or the FTC immediately.
If you are receiving calls from other creditors who are following collection standards, you may want to consult with a bankruptcy attorney regarding your rights. An attorney can help you stop creditor harassment and find a fresh financial start.
Source: BBB.org, "Debt collector Collecting Dozens of Complaints at BBB," Sue McConnell, July 23, 2013.