Tag Archives: bankruptcy

My Bankruptcy Law Network colleague Dana Wilkinson, who practices in South Carolina, reports on an unbelieveable scam perpetrated by a collection agency in Pennsylvania .   According to a press release issued by the state attorney general, the Unicredit Collection Agency created a bogus "court system" to trick consumers into paying debts. Unicredit employees dressed like sheriff's deputy's and "served" papers resembling lawsuits on consumers Unicredit issued fake "court notices" for hearings and depositions Unicredit built a fake courtroom, complete with a fake judge, where debtors would be intimidated into providing access to bank accounts or surrendering car titles The Pennsylvania attorney general has shut down Unicredit and has filed suit against the company seeking restitution for harmed consumers. What can we learn from the Unicredit story?  First, you should always be very suspicious of anyone who threatens legal proceedings, implies that you have no right to challenge a debt or suggests that you must resolve a debt issue immediately.  Under Georgia law, at least, a lawsuit must be served by a sheriff's deputy (who has identification) or a process server.  After service you have 30 days to file a response.   No judgment will be issued any faster than 45 days after service – 30 days to file a response and 15 days to open a default by paying court costs and filing fees (which amount to less than $200). Secondly, sheriff's deputies are not in the business of collecting debts.   Their job is to serve papers only.  If the person who looks like a deputy starts discussing the merits of the lawsuit against you, a red flag should go up.