In January 2015, the U.S. Department of Justice sued a Texas-based Commercial Recovery System, Inc., a debt collection company that allegedly impersonated attorneys, law firm staff, judicial employees and mediators.  The company threatened people with lawsuits, seizure of their property, or wage garnishment.  All these practices are against the law.  Under federal law, debt collectors–including collection agencies, lawyers who collect debts, and companies that buy delinquent debts and then try to collect them–can’t use abusive, deceptive or unfair practices to collect from you.

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Teaching Suggestions

• Ask students to check a local Consumer Credit Counseling Service to learn about their services provided to consumers.
• Ask students to compile a list of places a person can call to report dishonest credit practices, get advice and help with credit problems.

Discussion Questions

1. Which federal law(s) protect your rights if you are ever contacted by a debt collector?
2. If you need help regaining control of your finances, what resources are available to you?