The Massachusetts Attorney General?s Office announced yesterday that Danvers, MA-based Schrieber and Associates was fined $100,000 to resolve allegations that it violated state and federal debt collection laws, according to a statement released Monday by the office.
The settlement, filed in Suffolk Superior Court, stems from allegations that Schreiber & Associates used a variety of unfair and deceptive practices – including harassing and embarrassing consumers, exceeding the number of permissible calls, and making unsubstantiated threats – to collect debts.
Under the terms of the settlement, Schreiber will implement new policies and procedures that go beyond the requirements of state and federal law. Among other things, Schreiber must:
- designate a debt collection supervisor to ensure compliance with state and federal law;
- maintain records of all debt collection activities;
- record all telephone conversations with consumers;
- designate a mediation supervisor and implement procedures to mediate disputes with consumers with the assistance of AG Reilly?s Consumer Complaint and Information Section;
- provide enhanced training to its debt collectors;
- record and confirm in writing oral payment authorizations from consumers; and
- immediately notify consumers if Schreiber learns that a debt has been paid, is not the consumer?s obligation, or is otherwise illegitimate.
Jeffrey Schreiber, President of Schreiber & Associates, released his own statement to CollectionIndustry.com this morning:
?Schreiber and Associates is proud of its track record and success in the challenging and complex industry of credit and debt collection. As an industry leader in the debt collection field, we have implemented safeguards to ensure that the consumers we contact are protected by the law.
?Schreiber and Associates was disappointed to learn of the allegations in this case, and has worked closely and cooperatively with the Attorney General?s office to implement industry-leading measures to ensure that consumers are protected while the company acts on behalf of businesses that have not been paid.
?Among the best practices being adopted are extensive training of call center representatives and their supervisors, expanded numbers of managers and supervisors to constantly monitor calls, and the hiring of a full-time attorney trained in collections law who will be constantly auditing calls and conducting regular training sessions. In addition, Schreiber and Associates will establish state-of-the-art record and call databases.
?Our company has cooperated fully with the Attorney General?s Office in an effort to ensure that its call center not only meets state standards, but exceeds them.?
