Law firm shut down for unlawful debt collection practices

by Steven on March 30, 2011

I’m glad to report that another debt collection company has been shut down, but they will probably open up under another name down the street from where they were. Even though founding partner Derrick E. McGavic has to surrender his license to practice law he will probably open up with another lawyer and consult for them.

Attorney General John Kroger recently announced an agreement that shuts down a Eugene-based law firm that was the subject of dozens of complaints about its debt collection practices. In addition to closing down McGavic & Finney PC, the settlement requires founding partner Derrick E. McGavic to pay $70,000 and surrender his license to practice law.

“At a time when many Oregonians are struggling to manage their debt, the Department of Justice is committed to holding unscrupulous debt collectors accountable,” said Keith Dubanevich, Chief of Staff and Special Counsel to Attorney General Kroger.

The Department of Justice started investigating McGavic and his partner Kristan Finney after receiving more than 90 complaints against their law firm. McGavic was simultaneously undergoing an investigation by the Oregon State Bar.

McGavic & Finney specialized in representing national debt collectors that buy defaulted consumer obligations in massive quantities on the secondary market – often for pennies on the dollar.

Consumer complaints filed with the Oregon Department of Justice accused McGavic of systematically ignoring debtor protections and rights afforded under the Oregon and Federal Debt Collection Protection Acts. 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.

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