Griffith further argues that even innocent mistakes merit sentencing to financial accountability class. "Even if someone says that their child overdrew their account, we believe putting them in a diversion program is the right move."

In 2010, yet another class-action suit was brought against Corrective Solutions on behalf of more than 600,000 victims in California and Pennsylvania. The company was accused of violating the Fair Debt Collection Practices Act.

In November, it agreed to pay a $3 million settlement. But because the class was so big, each victim would receive less than $3. A federal court refused the settlement, ordering both parties back to negotiations.

Julie Orr bounced a $91 check at a grocery store but was hounded for more than $300 by a private collections agency.
Rodrigo Pena
Julie Orr bounced a $91 check at a grocery store but was hounded for more than $300 by a private collections agency.
Adam Levin, former consumer affairs commissioner of New Jersey and owner of Credit.com.
Adam Levin, former consumer affairs commissioner of New Jersey and owner of Credit.com.

As the case against Corrective Solutions languishes in court, advocates hope Congress will finally close the 2006 loophole.

They received a glimmer of hope in October, when the Consumer Financial Protection Bureau announced that it would be overseeing debt collectors starting this year. For the first time, the feds will require debt collectors who make more than $10 million a year to supply regular reports, making sure they aren't deceiving and threatening consumers.

But for now, the only oversight comes from those making money on the deals: the district attorneys themselves. And they show little interest in policing the industry. So victims such as Orr have little recourse but to hire lawyers, paying thousands to defend themselves for bouncing $50 checks at the grocery store.

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1 comments
AndreaTN
AndreaTN

So will we find that the person who runs this abusing shake down debt collection is friends or a family member of someone in power  in California?  Where are those who are suppose to be working and representing the common citizen?  Why is it that there seems to be two sets of laws in our country of late, one for the so called uber rich and one for the rest of us so called  useless eaters?

 
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