Oregon debt collection law firm shut down because of allegedly illegal collection tactics

As part of a settlement with the state Attorney General, the Oregon debt collection law firm of McGavic & Finney has agreed to close its doors. In addition, the founding lawyer has agreed to pay a $70,000 fine and give up his law license. Here’s the details, as summarized by the Albany Democrat Herald:

For example, McGavic allegedly misidentified or purposefully confused the identity of creditors in documentation to delay consumers’ response and thus increase fees and interest payable to McGavic and his clients.

Notices issued by McGavic allegedly omitted specific information related to the amount of the defaulted debt and failed to provide proper verification of debts when requested by consumers. Similarly, McGavic allegedly repeatedly called debtors who had requested in writing not to be called.

The Department of Justice’s investigation also uncovered McGavic’s pattern of falsifying fee affidavits in motions for default judgments by claiming services he did not perform. In addition, McGavic allegedly provided his office staff with a schedule to be used to arbitrarily increase the fees claimed — depending on the amount of money claimed or the venue of the action.

Law firm shut down over collection tactics | Albany Democrat Herald | March 18, 2011