Asset Acceptance LLC May Be Going to Court Against You in Minnesota
Because of a financial setback, you have gotten behind or not paid on some credit card debt. You are not the type of person to try to get out of meeting your obligations, but things happened that made it out of your control. When checking your credit report you see the name Asset Acceptance, LLC. You have never done business with them, so who are they?
Who Are They and What Do They Do?
They were a debt buyer of credit card debts and car loan repossession debts. The company you originally had the credit card or loan with packaged your debt, along with maybe hundreds of others and sold it to Asset Acceptance, LLC, for possibly only pennies on the dollar. The way they make money on the deal is by collecting all or a portion of the debt from you. Their collection practices were aggressive and many times illegal.
They were located in Warren, Michigan but had dealings with people all over the country, including people in the Minneapolis/St. Paul area.
Charged by the Federal Trade Commission (FTC)
From a press release from the FTC on January 30, 2012.
- The FTC’s complaint charged Asset Acceptance with many aggressive and deceiving practices concerning their pursuit of collecting consumer debt. Some of the allegations were not having proof of the debt by correct paperwork, harassing people by repeated phone calls, calling people who did not have debt, reporting the debt to credit agencies without proper verification, making false claims about the debt in order to collect.
Another main complaint was the company’s practice of suing consumers on “time-barred” debt. Or in other words, debt that was past the statute of limitations, and would trick people into getting the time started again. Walker and Walker Law Offices, PLLC have a page just dedicated to the law concerning the statute of limitations in Minnesota. It is complicated, and Asset Acceptance, LLC counted on the consumer not understanding the law. That, along with not properly informing people of court dates caused the company to win most lawsuits because the consumer defendant did not show up to court.
Settlement From Asset Acceptance, LLC
Also in January of 2012, Asset Acceptance, LLC agreed to settle for 2.5 million for alleged consumer deception. Although this is a lot of money, it did not make them an asset that was not valuable to acquire. As is next, they were purchased.
Encore Capital Group Buys Asset Acceptance
In June of 2013 Encore Capital Group announces the final acquisition of Asset Acceptance LLC. Apparently, Encore felt they were still a valuable asset to add to their bottom line.
Settlement From Encore Capital Group
Per a press release by Encore, the company settled on December 4, 2018, with 42 states and the District of Columbia for the amount of $6 million to be divided between the states, as well as $25,000 to each state to give relief for certain consumer claims. So here is the settlement for a similar lawsuit against Encore Capital Group, the company that purchased Asset Acceptance, LLC.
Other Names Associated
Besides Asset Acceptance, LLC, Encore Capital Group, Cabot Credit Management, Asta Funding Inc. and Portfolio Asset Recovery are all companies in association with each other. These are the largest distressed consumer credit buyers and debt collectors. There are many other companies, and their business practices are not necessarily deceptive, but you need to know how to handle your debt.
What to Do When You See Their Name
You can be sure, they know what they are doing, and any dealings you make without having legal counsel may not turn out well for you. To be sure your rights are protected, contact us to explain to you the best course of action.