Not What It Seems
Debt collectors have been accused of using shady tactics in order to collect, but a class action lawsuit filed in San Francisco in January alleges one of the shadiest tactics yet. Debtors received letters threatening them with criminal prosecution unless they paid alleged debts. The letters all bore the seal and letterhead of a county district lawyer. As it turns out, the letters didn’t come from a district lawyer, but from a private debt collection firm called Corrective Solutions. A local district lawyer actually allowed the company to use his seal and letterhead. If you are struggling with debts in the Chicago area and receiving threatening letters and calls from debt collectors, discuss your options at once with an experienced Chicago bankruptcy lawyer.
Corrective Solutions is a debt collection agency that pays district lawyers for the ability to use their seal and letterhead, leading consumers to believe that they are subject to criminal prosecution if they don’t pay a debt. But there is no criminal prosecution; it’s just a routine civil debt collection. Apparently, however, the problem has become widespread. The American Bar Association (ABA) even released an opinion in November; the ABA concluded that the practice of loaning a prosecutor’s letterhead to debt collectors violates ABA model rules against “dishonesty, fraud, deceit or misrepresentation” and the unauthorized practice of law.
This practice isn’t wholly illegal, at least not in California. In fact, the debt collection companies say that it’s authorized by law. In Illinois, one sure way to stop threatening letters and phone calls from debt collectors is bankruptcy. Bankruptcy is not right for everyone with debt troubles, but a good bankruptcy lawyer can help you determine if bankruptcy is the option most suitable for your particular situation and interests. Your bankruptcy lawyer can also discuss options and alternatives to bankruptcy which may be more appropriate in your own case. If you are fighting mounting debts and harassment from debt collectors, arrange to speak with an experienced Chicago bankruptcy lawyer immediately.
