A man named Carmelo Collana plead guilty to wire fraud and now faces up to 20 years in prison for his part in a scheme that may have collected $22 million on what were largely fake debts. In fact, the scheme participants may have collected the same accounts against the same people multiple times, and used threats of arrest and intimidation to do it.

Here’s a little of my perspective as an attorney who has been defending consumers against debt collectors, and suing collectors who break the rules for over 25 years:  The more flagrantly the debt collector breaks the law, the less likely that you’ll be able to sue them successfully for violating the Fair Debt Collection Practices Act.  The collection agencies that call on made up debts, that threaten force or arrest if you don’t pay, these are criminal enterprises that aren’t afraid of a lawsuit. These companies don’t intend to be around in a year or two when you can get a lawsuit through the system. 

These thug companies, “bottom feeders’ we call them, have congregated in the Buffalo/Niagra, New York area for more than 20 years. Why? who knows.  If you are contacted by a debt collector, take the time to learn your rights under the Fair Debt Collection Practices Act. You can use this link for information from the Federal Trade Commission right here. 

If a collector calls you, and you don’t think the debt exists, you are probably right.  Make the collector provide proof. No legitimate collector will threaten you with arrest or criminal prosecution.