Alco Collections debt agency is bound by the Fair Debt Collection Practices Act. Learn more about the company and how you can stop harassing debt collection calls.
Alco Collections, Inc. is a legitimate third-party debt collection agency founded in 1987 and headquartered in Baton Rouge, Louisiana.
According to its website, Alco Collections, Inc. boasts that collections “is our only business and that is what we do best- Collect.” In furtherance of its debt-collection mission, Alco Collections, Inc. employs a number of tools, including “the most sophisticated “State-of-the-Art services available.” Additionally, Alco Collections, Inc. is compensated on a contingency bases, which means that Alco Collections, Inc. gets paid based on a percentage of the amount it is able to collect. As such, Alco Collections, Inc. is motivated to collect the maximum amount possible from any individual debtor. To achieve maximum returns, Alco Collections Inc. utilizes credit reporting services to prevent debtors from qualifying for credit while any debt is outstanding. Alco Collections, Inc. also uses credit investigation tactics and skip tracing, which includes “aggressive location search[es]” for debtor addresses and workplaces using public records, online databases, telephone databases.
If Alco Collections, Inc. is unable to obtain collection through a payment plan, Alco Collections, Inc. boasts that its in-house attorney network will pursue “legal action in order to recover monies due, including engaging an attorney, filing suit in the proper jurisdiction, garnishing wages and enforcing judgments. We work directly with the attorney and advance court costs.” Once an interest accruing judgment has been obtained, Alco Collections, Inc. will pursue wage garnishments against the debtor.
Alco Collections, Inc. is a member of the International Association of Credit and Collection Professionals (ACA International). However, its website is client-facing and does not include links or references to consumer protection resources, laws, or enforcement agencies.
Alco Collections, Inc. serves a diverse clientele, collecting delinquencies for a variety of businesses in the financial services, medical and dental, and rental property management industries, including accounting firms; advertising and marketing firms; ambulance services; apartment complexes; attorneys; auto retailers and auto parts stores and suppliers; banks and credit unions; boat dealers; cellular telephone service providers; child care service providers; florists; fuel and oil companies; government agencies; gyms; heating and air conditioning services; hospitals and private medical and dental practices; and pay day loan companies. Alco Collections, Inc. also accepts commercial business-to-business accounts.
As a third-party debt collection agency, Alco Collections, Inc. is required to adhere to the Fair Debt Collection Practices Act (FDCPA), a federal law that protects consumers from abusive debt collection tactics. Nevertheless, consumers have filed complaints accusing Alco Collections, Inc. of violating the FDCPA. Those accusations have included claims that the debt collection agency has threatened to sue consumers without actually intending to do so and talking to third parties about consumers’ debts. It’s imperative that you know your rights under the law before speaking with Alco Collections, Inc. debt collectors.
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Alco Collections, Inc. is not accredited by the Better Business Bureau (BBB), though the BBB currently lists an “A” rating for Alco Collections, Inc. despite the presence of four complaints against Alco Collections, Inc. in the past three years, only one of which has been resolved. All of the complaints against Alco Collections, Inc. alleged problems with billing and collections. Since September 2013, the Consumer Financial Protection Bureau (CFPB) has received 20 complaints against Alco Collections, Inc. 18 of these complaints contained allegations related to Alco Collections, Inc.’s debt collection practices, while the remaining complaints contained allegations related to credit reporting practices. In addition, Justia, one of the largest online legal databases in the United States, lists at least two federal cases of civil litigation involving Alco Collections, Inc.
If you’ve been contacted by Alco Collections, you have the right to sue them in federal court if the debt collection agency has violated the Fair Debt Collection Practices Act. Signs that you may be on solid legal footing are:
The Fair Debt Collection Practices Act was put into law in order to protect consumers like you, but there’s a catch. While the government sues debt collection agencies that egregiously violate the law, it doesn’t sue agencies on behalf of individual consumers. Instead, the FDCPA has what’s called a fee-shifting provision. This means that, if you sue and win, then the debt collection agency has to pay your court costs and attorney fees. Fee-shifting levels the playing field so that you can assert your rights.
Are you asking yourself…
Alco Collections could be calling for a number of reasons, all of them related to debt collection:
If you’ve been contacted by Alco Collections it’s important to know your rights under the Fair Debt Collection Practices Act. If they’ve violated your rights, you can take the agency to court and sue for statutory damages of up to $1,000 – along with court costs and attorney fees.
Yes. Alco Collections can sue you if you owe the debt, however, threatening to sue or serve you with papers if they don’t intend to do so is a violation of the Fair Debt Collection Practices Act. Additionally, after receiving the first collection notice, you have 30 days to dispute the debt. If you dispute the debt, then Alco is required by the FDCPA to prove that you do, in fact, owe the money. A debt collection agency isn’t allowed to sue you if, for example, the debt is past the statute of limitations or if you do not legally owe the debt. It’s a good idea to speak with a fair debt attorney if you’ve been served with a summons or legal complaint.
Yes. However, Alco Collections cannot threaten you to garnish your wages and garnishment can only only occur if Alco files a lawsuit and obtains a judgment against you. It’s common for consumers to ignore notice of a lawsuit; if you don’t appear in court, the judge may automatically rule against you. Debt collection agencies have been known to avoid serving consumers with notice to increase the odds of obtaining a judgment. This is called “sewer service” or “gutter service.” The bottom line? If wage garnishment takes you by surprise, talk to a consumer attorney who can fight for your rights.
Yes. Alco Collections can report debts in collection to the three major credit reporting agencies – Experian, TransUnion, and Equifax. Once a debt is reported to the credit bureaus, it will appear on your credit report and will impact your credit score.
Yes. However, as with wage garnishment, a property lien can only arise out of a court judgment against you. If Alco files a lawsuit against you and the judge rules in their favor, then the debt collection agency has a right to collect that money. One way of doing that is by putting a lien on your house or property. That’s why it’s imperative to respond to legal papers and to have an attorney by your side who will fight on your behalf.
No. Alco Collections – or any other debt collection agency like Alco for that matter – has no authority whatsoever to arrest you. In fact, threatening you with arrest or jail is a violation of the Fair Debt Collection Practices Act. While so-called “debtors prisons” are illegal, only non-payment of things like traffic tickets can lead a judge to issue a bench warrant, which in turn can lead to arrest.
Yes. You absolutely have the right to sue Alco Collections if you believe Alco violated the Fair Debt Collection Practices Act. The FDCPA says that debt collection agencies that violate the law must pay consumers up to $1,000 in statutory damages, as well as court costs and attorney fees. That’s why engaging a fair debt attorney to represent you in an FDCPA lawsuit typically doesn’t cost you anything out of pocket. The attorney that agrees to take on your case knows that the debt collection agency will be forced to pay their fees.
If Alco Collections – or any other debt collection agency – is calling you to the point of harassment, using abusive or profane language, or violating the FDCPA in some other way, it’s time to fight back. Under the law, you may be entitled to up to $1,000. At Lemberg Law, we won’t charge you a dime out of pocket, and we only get paid when you win. Call us today for a free, no-obligation, case evaluation. We’ll get the justice that you deserve.
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Lemberg Law is a consumer law firm helping victims of collection harassment and abuse. We are ranked A+ by the BBB. We’ve helped more than 15,000 consumers stop harassment and recover money from debt collectors. Harassed? Abused? Misled by a collector? Call our Helpline today! There is no charge unless we win.