Collector – September 2019 - 51

IAP

"ACA members are all too familiar with consumer
groups that subvert business with frivolous
claims. But every cloud has a silver lining."
process the collection agencies were
under no obligation to conduct had they
known that the letters were manufactured
and mailed by the defendants.
The complaint alleged, and the jury
found, that Lexington Law Firm and
Progrexion "intentionally manufactured
and delivered fraudulent letters to [The
CBE Group, Inc. and RGS Financial, Inc.]
with the goal of circumventing the FCRA's
and FDCPA's requirements in hopes that
[The CBE Group, Inc. and RGS Financial,
Inc.] will delete Lexington Law clients'
tradelines." Considering the serious and

egregious nature of the findings, the jury
awarded both compensatory damages and
exemplary damages totaling roughly $2.5
million.
But these fraudulent practices are
not uncommon in our industry. ACA
members may recall the Yaakov Saks
establishment of RC Law Group and
Credit Shield 360. In 2017, a district court
judge in the Southern District of New
York publicly exposed the practices of
these groups and dismissed a complaint
explaining that a dispute letter mailed by
the law firm about which the consumer

had no knowledge was not a valid dispute
triggering any responsibility under
federal statutes.
Organizations such as Lexington
Law Firm, Progrexion and the like
have managed to warp the protections
afforded to consumers by federal
statutes. Elaborate schemes created by
these operations frustrate businesses
and result in severe consequences,
including valid payment plans being
interrupted, inaccurate credit reporting
and lost revenue.
ACA is delighted by the jury's
verdict in the Lexington Law Firm and
Progrexion case and is proud to have
supported its members in litigating
their claims against these organizations
by providing Industry Advancement
Funds to help defray the cost of
prosecution. ACA is likewise proud of
the effort put forth by its members in
this lawsuit. Because of their zealous
prosecution, the accounts receivable
management industry has sent a clear
message: fraudulent practices that harm
consumers and debt collectors alike will
not be tolerated.
Nevertheless, it would be overly
optimistic to proclaim that this is the
last we will hear about these sinister
organizations. The lawsuit filed by ACA
member law firm Malone Frost Martin
PLLC is just the beginning of exposure
to the fraudulent practices carried out
by groups like Lexington Law Firm and
Progrexion. But rest assured ACA and its
Industry Advancement Program is here
to throw its members a lifeline and work
together to hold bad actors accountable
for their actions.
If you want to read more about
the most recent significant judicial
decisions involving the credit and
collection industry, ACA members can
always find concise case summaries
at acainternational.org/industryadvancement-program.
Kari Barber is ACA International's
corporate counsel.

COLLECTOR 09.19

51


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Collector – September 2019

Table of Contents for the Digital Edition of Collector – September 2019

Ask the Experts: Raising the Bar
Staying on Track
Work Ethic From the Ground Up
Calling Concerns
Robo-Dispute Purveyors Found Guilty of Fraud
Upfront
Industry News
Best Practices
FYI
Collection Tips
Calendar
Honor Roll
Education Spotlight
ACA SearchPoint
Ad Index
Membership
Last Word
Meet ACA’s 2019/20 Board of Directors
Collector – September 2019 - Cover1
Collector – September 2019 - Cover2
Collector – September 2019 - 1
Collector – September 2019 - 2
Collector – September 2019 - 3
Collector – September 2019 - Upfront
Collector – September 2019 - 5
Collector – September 2019 - Industry News
Collector – September 2019 - 7
Collector – September 2019 - 8
Collector – September 2019 - 9
Collector – September 2019 - 10
Collector – September 2019 - 11
Collector – September 2019 - Best Practices
Collector – September 2019 - 13
Collector – September 2019 - FYI
Collector – September 2019 - 15
Collector – September 2019 - Collection Tips
Collector – September 2019 - 17
Collector – September 2019 - 18
Collector – September 2019 - 19
Collector – September 2019 - 20
Collector – September 2019 - 21
Collector – September 2019 - 22
Collector – September 2019 - 23
Collector – September 2019 - 24
Collector – September 2019 - 25
Collector – September 2019 - Meet ACA’s 2019/20 Board of Directors
Collector – September 2019 - 27
Collector – September 2019 - 28
Collector – September 2019 - 29
Collector – September 2019 - 30
Collector – September 2019 - 31
Collector – September 2019 - 32
Collector – September 2019 - 33
Collector – September 2019 - 34
Collector – September 2019 - 35
Collector – September 2019 - 36
Collector – September 2019 - 37
Collector – September 2019 - Calendar
Collector – September 2019 - Honor Roll
Collector – September 2019 - Education Spotlight
Collector – September 2019 - 41
Collector – September 2019 - Ask the Experts: Raising the Bar
Collector – September 2019 - 43
Collector – September 2019 - Staying on Track
Collector – September 2019 - 45
Collector – September 2019 - Work Ethic From the Ground Up
Collector – September 2019 - 47
Collector – September 2019 - Calling Concerns
Collector – September 2019 - 49
Collector – September 2019 - Robo-Dispute Purveyors Found Guilty of Fraud
Collector – September 2019 - 51
Collector – September 2019 - ACA SearchPoint
Collector – September 2019 - Ad Index
Collector – September 2019 - Membership
Collector – September 2019 - 55
Collector – September 2019 - Last Word
Collector – September 2019 - Cover3
Collector – September 2019 - Cover4
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