Debt Collector Uses Consumer's Debit Card Information for Spending Spree

The Buffalo News reports here about a debt collector who persuaded a consumer to provide him with her debit card information and then ran up nearly $2,000 of charges on her account.  He later asked the debt collection agency for his pay check!  With issues involving identity theft, debt collection, fraud, payments, and possibly credit reporting, the story would make a good exam question (hat tip to Gina Calabrese).

Comments

[Think Money]

Unbelievable! It's a real shame, but these days it feels like you can't trust anyone!

[Angelica]

I recently voiced this very concern. Banks, Federal Employees, and other regulated industries require fingerprinting and background checks due to the sensitive information they maintain. Non-Bank lenders, third party debt collectors, and credit reporting agencies that acquire and require consumers to reveal personal information is not subject to any regulation.

There is another collection firmin the Buffalo area not referenced above that misrepesents themselves as a law firm, threatens debtors, obtains debit card/credit card info and withdraws money without consumer knowledge or consent and without a court order. The company had a branch in Florida that was involved in recreational drug use on the premises and former employees reported in blogs that there was drug trafficking involved. Who knows how accurate the former empoyee allegations are, but the company had to change their name and was banned from doing business in West Virginia and Idaho due to the enormous number of law suits filed against them in those states.

The system has run rampat and something needs to happen to change it protecting consumers from illegal activity from disrepuable collection firms.