For years cities and towns have turned to debt collectors to collect unpaid parking tickets. It may make financial sense, but, by and large, it's quite obvious who is dunning you (Do you get the feeling that I have a little experience in this area?) and why and sometimes you can even agree that you owe the money and so you pay it.
Apparently, in some counties there is a very different procedure if you issue a bad check, even a check for a small amount, e.g., $14. The district attorney, the chief prosecutor for the county, may turn the matter over to American Corrective Counseling Services (ACCS), a debt collector with a few new twists.
ACCS sends out a letter that looks like it came from the district attorney. One such letter went to a college student whose $92 check to the bookstore bounced due to a screwup which can occur if there is more than one person writing checks on the account; in this case her mother was also writing checks. The letter said that the student had "violated criminal statutes by issuing a bad check." She faced as much as a year in jail and a $2,500 fine unless she made good, paid an additional $215 in fees and spent a Saturday at a "financial accountability class." Being a trusting young person, she complied. However, ACCS had no authority to send such a letter. Yes, they had a deal with the DA, but the deal called for their involvement only if the check exceeded $100.
But even in those cases where the amount is greater than $100, one has to be concerned with behavior and actions which strongly imply that one is dealing with the legal authorities. It is very likely that collections are better when the debtor thinks the law is after him. Are the district attorneys acting honorably and legally by allowing their seal to be used by a private company?
The problem is more than impersonating an officer of the court. A case is begun when a merchant informs ACCS that it has received a bad check and has tried to contact the check writer. In many cases proof that contact has occurred can't be found. In some cases ACCS telephones people with a message like "Twentieth judicial, state’s attorney bad check restitution program. Our office has an official matter requiring your immediate attention." And, of course, there is no legal requirement to attend a course, for which you must pay.
This can be a lucrative business. The company has 300 people dunning for them and has convinced at least one VC to invest in them. It's lucrative enough to lobby Congress to exempt it from the Fair Debt Collection Practices Act.
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