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NBC News Investigates 500 Complaints Filed in 90 Days Against One Debt Collector

In 2010, Hollywood Video filed bankruptcy and closed its doors across the nation. Like every person or company who filed for bankruptcy protection, Hollywood Video had to list its assets. The only real asset it had was unpaid fees. So, the bankruptcy trustee began attempts to collect those fees using debt collection companies. However, two years later, the list of complaints against the debt collection companies on Hollywood Video's behalf continue to pile up. Currently NBC News is investigating 500 complaints filed against Universal Fidelity, one of those debt collection agencies, in the past 90 days. The list of complaints includes bullying, threatening to ruin credit, and additional fees. What makes these allegations more alarming (but perhaps typical from the complaints I hear from my Waco bankruptcy clients) is the sheer number of complaints and the fact that employees of the St. Louis Better Business Bureau report, "It seems pretty clear a lot of people are receiving these notices who do not owe this money." These complaints against Universal Fidelity are not the first set of complaints to trouble Hollywood Video's bankruptcy. In 2011, complaints piled up against National Credit Solutions for trying to collect debts allegedly owed to Hollywood Video. So many complaints that the bankruptcy trustee reached a settlement with all 50 states' attorneys generals to dramatically alert their collection tactics. Specially, the trustee promised to stop threatening to report the alleged debts owed to Hollywood Video on credit reports. The debt collection agencies put a notice on the employee's computers reminding them not to threaten credit reports and the complaints died down. Until the last few months when a new wave of complaints are coming in. The St. Louis Better Business Bureau issued a BBB Alert last month. Many people receiving these debt collection phone calls are just paying the alleged debts even though they don't owe them to stop the harassment and make sure their credit stays good. For more information on this story, see http://redtape.nbcnews.com/_news/2012/08/08/13167682-zombie-debt-collections-hollywood-video-is-dead-but-bills-still-haunt-consumers?lite. Do you have old debts on your credit report that you need to clean up? Call today at 254-633-2876 or email us at [email protected] for a free, no-obligation consultation to explore your options. Let my family help yours!

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