Woman Sues Debt Collectors Over Alleged Facebook Harassment

A Florida woman who fell behind on her car payments is suing the company she claims has been using Facebook to contact her family members in a campaign to embarrass and intimidate her into paying the debt.

When Melanie Beacham of St. Petersburg had to take a medical leave of absence from her job this summer, she alerted the company, Mark One Financial, that she would likely fall behind on her monthly $362 car payments, her attorney told The Huffington Post. Two months later, the attorney said, Mark One representatives began calling Beacham up to 20 times a day and contacting her cousin and sister on Facebook.

The plaintiff's court filings allege that on July 30, a Mark One representative using the pseudonym "Jeff Happenstance" sent a message to Beacham's cousin asking him to have Beacham call a phone number that leads to a debt collection agent at Mark One. Beacham said the company also contacted her sister, who lives in Georgia.

"I was in shock. It was very disturbing, aggravating, and embarrassing," Beacham told HuffPost through her attorney, Billy Howard, a Tampa representative of the regional law firm Morgan & Morgan.

Howard has filed a motion to enjoin Mark One from using Facebook to contact Beacham's family and friends, which he says would be the first injunction of its kind in the United States. He called the practice of harassing a debtor's family members through social networking "psychological torture," and said he has no doubt Mark One acted illegally in this case.

"The law says you can't do anything that is considered harassing or abusive," Howard said. "What they did clearly falls into that category."

A spokesperson for Mark One Financial said they were no longer responding to media inquiries regarding Beacham's case, but Bruce Newmark, the company's managing director, told Orlando TV station WKMG on Monday that they use Facebook only when there is no other way to contact a person.

When pressed on documents related to "Jeff Happenstance," Newmark claimed ignorance. "I don't know if that's the case," he said of his company's alleged pursuit of Beacham via Facebook alias. "I think you're bringing up something we didn't have any knowledge of."

In Beacham's view, the numerous phone calls and voicemails she received from Mark One suggest that they knew there were better ways to find her.

Howard said that in his law practice, he has been seeing more and more cases of debt collectors using Facebook to illegally pressure people into paying debts.

"I've seen it happen to a number of my clients, and it seems like Facebook is going to be the new way to harass people," he said. "It's certainly one of the cheapest ways to track down someone's friends and family and coworkers, and it can lead to such embarrassment that people will pay money whether they owe it or not. It's a one-stop shop for harassment."

Howard, who has successfully sued Mark One in the past, said he is confident that the jury will find in favor of his client.

"Debt collectors usually have two arguments -- 'It wasn't me,' and 'We didn't do anything wrong,'" he said. "The first one is not available to them, so now they are saying they didn't do anything wrong, but we think a jury will find to the contrary."

Have you been illegally harassed by a debt collector? Send your stories to [e-mail].

Comments

[Diasamax]

06:41 PM on 11/19/2010

Debt collection is one of the worst jobs on the planet. They are not properly regulated and are more than willing to do whatever they deem necessary to force payment to be made. Look up the "FDCPA - Fair Debt Collectors Practices Act" to understand what your rights are.

Now we have the additional problem of companies calling people on debts from 10 to 30 years old. When clearly, there are no records to justify the debt claim/calls (the original company owed most likely does not have it on file anymore, cannot prove the debt). Most of those companies if they do not have your contact information from the company the debt was owed, will call everyone under the sun with the same name, pretend to be a friend, co-worker, doctors office, you name it, just to get in contact with you and try to shame you into making a payment.

As someone who once worked in debt collection do not, do not, do not put down any additional contact information when you fill out applications for credit cards, etc. Those are the numbers they will use to try to find you. If you really want to make them work for it, use a prepaid phone. And check your credit report to make sure debts are not filed more than once. Only the company the debt originated from or the first collection agency (based on contract) as the right to put that on your credit report.

[gavrielle]

11:16 AM on 11/19/2010

This is not a new tactic. When I worked as a temp secretary for Chase Auto Finance (they did luxury car loans in the late 80s) collection agents would look up addresses adjacent to a debtor's and contact their neighbors in an effort to embarrass them. The Facebook thing may be new, but attempts to have your friends, neighbors and family members coerce you into paying is not.

[ChimChimTheMonkey]

09:41 AM on 11/19/2010

I hate when people say things like, "She should have done the right thing and just paid her bills." The article clearly states that she had to take a medical leave from her job, and that she notified the company that she was going to fall behind. Medical emergencies are one of the most common reasons why people's finances get ruined.

[J0E1]

12:18 PM on 11/18/2010

She should have either paid, sold the car, or given it up.

That said, contacting relatives is not acceptable.  I hope she wins this case to send a message to debt collectors to SCREW OFF.  I've never had to deal with them and I never plan to, but complete and utter harassment is not the way to go.

[Giverny]

08:26 AM on 11/19/2010

No one ever plans to, J0E1.

[gavrielle]

11:19 AM on 11/19/2010

Yeah, when I worked as a secretary in the Collections division of a major bank, the collection agents said the same thing. Once to an AIDs patient who needed the car to get to the doctor. I'm sure the lady, who had to miss payments on account of being sick, would agree to giving up her only means of transportation.

[wbthacker]

05:10 PM on 11/19/2010

Regarding that AIDS patient... why didn't you give him your car, since he needed a car to get to the doctor?

[jasev01]

12:08 PM on 11/18/2010

on one hand pay your bills, but on the other and the more pertinent one debt collectors have gotten way too out of control in this country.  The ability to write something just randomly that ruins a person's credit and life is unacceptable.  If they do and its found to be wrong they should be forced to forgive the debt and to pay the difference between  the prior payment and the increased payment due to their false report. That will give them reason not to write false things and to decrease payments (hopefully other creditors would as well) when circumstances change.

[Ed Baker]

10:58 AM on 11/18/2010

Of course - she could have simply done the right thing - and turned in the car, let it be sold at auction, and paid the difference in installments, as per her loan agreement. Then no one would have called her again. But people are always looking to get something for nothing, or to weasle out on their contracts...... and then play the victim.

The law isn't very sympathetic to debtors who claim "harrassment" as nearly every single one of them does. I'm sure she won't be successful.

Meanwhile - she should turn in the car and make arrangements to pay the shortfall, as one cannot "come to a court of equity with unclean hands." The law isn't going to help her get out of paying her debt that she incurred.

[LeftRight]

07:14 PM on 11/18/2010

Of course without the car she likely couldn't reach her doctor's appointments and would find it almost impossible to get a job when she's well again, but then she just shouldn't have gotten sick in the first place, right?

[Ed Baker]

01:22 PM on 11/19/2010

These are her lenders problems? She should have bought disability insurance - or saved for a rainy day, or bought less car or?????

These are her problems - loans are not welfare programs. If the bank failed to perform their end of the loan contract, they would be culpable as well and no one would care if the loan officer was sick that day or mama died or the dog had a bad cough......

[OSCPJ]

03:37 PM on 11/19/2010

When she fails to pay, she loses the collateral.  An asset she never owned. 

She failed to pay the payments.  Why would she get to keep the car? 

How do you guys always favor feelings over reasoning?  Explain how she deserved to keep the car?

[whassis]

10:39 PM on 11/18/2010

She let them know she was on medical leave and might be late on payments. Most reputable lenders will work with you in a case like this.

Prohibitions under Fair Debt Collection Practices Act - some examples:

Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously: with intent to annoy, abuse, or harass any person at the called number.

Communication with third parties: revealing or discussing the nature of debts with third parties (other than the consumer's spouse or attorney).

Contact by embarrassing media.

[Ed Baker]

01:20 PM on 11/19/2010

Communications with third parties are not prohibited as long as no non-public information is devulged to them. If the firm were guilty of telephone harassment (and this is easy to establish with phone records) I doubt she'd be suing - an administrative complaint would have resolved the matter - the fact that she's suing tells me she has no case. There are no regulations as to embarassment.

She should turn in the car and get on with the process. SHE will be better off for it.

There are no medical leave provisions in loan contracts and lenders do not routinely allow for default without consequence because of medical reasons. She could have purchased disability insurance to cover this problem - or saved for a rainy day. Her health is her responsibility - loans are not welfare programs.

Let me know of any lender that makes such an exception, I'd like to sell the stock if I own it.

[eric14]

10:15 AM on 11/18/2010

Relatives contacted also have a case for intimidation and harassment.

[Ed Baker]

10:55 AM on 11/18/2010

They'd have to prove - good luck. :)

[Neufield]

03:29 PM on 11/18/2010

Did you read this article? They were contacted on Facebook. There is a record of it. Don't be such a J*ckA** - do us all a favor and get informed.

[Pandoras Folly]

09:57 AM on 11/18/2010

a mean trick.

if you ever get a envelope from some company you don't like and it is labeled as pre paid stick it on the front of a big box, fill box with rocks, send box to company.

[Ed Baker]

11:00 AM on 11/18/2010

The post office will not return this to the sender, it will simply be shredded and thrown out, and you may be charged with a crime for attempting to send this through the mail.

[MeinNH]

08:37 AM on 11/18/2010

Years ago my mother had a whistle that she used when an obscene phone caller was bothering us....my sister now has it and puts it to good use on bill collectors, sales people etc. I am purchasing one today. Anyone else who is sick of the harassment might do the same...maybe they will get the hint.

[vet65]

10:19 AM on 11/18/2010

Personally, I use a very loud duck call. Then I LOL.

[MeinNH]

10:31 AM on 11/18/2010

LOL...she did have one of those at one point too. I think I will get one of each for variety.

[Ed Baker]

11:02 AM on 11/18/2010

This woman could have simply complied with the terms of her loan contract and turned in the car and made arrangements to pay the shortfall after the car is sold. Instead, when they didn't agree to let her make late payments, she sought to evade the creditor instead. They held up their end of the bargain, they lent her the money when she wanted it, and she got the car she wanted, now she has to pay for it. If she can't pay for it, there are provisions in her loan contract to accomodate that scenario. She should simply grow up and take her lumps - next time - buy a car with cash - or take the bus.

[LeftRight]

07:15 PM on 11/18/2010

Wow, your compassion for your fellow man is overwhelming!

Try to survive in this world without a car, you'll find that it's usually impossible!

[jimmylutherking]

11:07 PM on 11/18/2010

Don't defend harassing debt collectors, Ed. Its very unbecoming.

[aonemandog]

08:31 AM on 11/18/2010

How did the debt collection company get into her facebook account? I thought you had to be approved by the account owner before you could see who thier friends and relatives were. This will sound paranoind, but I doubt that most people understand how many agencies, Government and commercial are tracking your every move as you blithely twitter, facebook and my space all day long. There is very little privacy availabe anymore and you are being encouraged to give that up everyday. Zuckerberg and the rest of these networking site owners are more than likely allowing the government in.

[OldFart2]

07:20 AM on 11/18/2010

It never ceases to amaze me how consumers represent 70% of the economy but the deck is stacked so heavily in favor of the banks, wall street, and other financial gangsters.

[LeftRight]

07:25 AM on 11/18/2010

Because people beleive the lie that SUPPLY is the be all and end all, forgetting that it's DEMAND that drives the whole economy!

[dadw5boys]

08:38 AM on 11/18/2010

they control the demand and the supply .

demand with advertizing and supply with just in time delivery that gives them price control .

[outtopastur]

08:01 AM on 11/18/2010

Exactly.

"Let's see if I get this right. If a big financial institution gets into trouble, the government is ready to step in and bail it out and make the little guy pay for it.

But if the little guy gets into trouble, and the big financial institution comes demanding its money back, not only does the little guy get no relief, but he gets little to no real government protection when the lender applies strong-arm tactics to collect its debt. And for all of the talk of meaningful change in Washington, abusive collection actions won't be stopped any time soon.

Collectors understand that they are dealing with people for whom the collection issue is just one problem; arranging for an attorney to represent them in a consumer case is not necessarily realistic.

With that in mind, collectors know they can flout the laws or live on the edges, knowing that their behavior may result in better results, returns so good that they can afford to pay any fines or problems they encounter. What's more, collectors can -- and do -- buy a database of consumers who have filed suits, helping them to avoid hard cases".

http://www.marketwatch.com/story/weak-regulatory-changes-wont-stop-abusive

[Ed Baker]

11:07 AM on 11/18/2010

I guess she could make a case to her congressman that her car loan is of systemic importance to the entire economy? Good luck with that.

The loan agreement she signed says nothing about that, and it doesn't say you don't have to make your payments if you lose your job. It says that if you don't make your payments you give up the car, it's sold and you pay any shortfall. That's what she agreed to - all this other activity is a direct result of her non-compliance with her loan agreement.

[jozie]

07:04 AM on 11/18/2010

Yet another, among many reasons, to not put yourself out there on facebook or anywhere else on the web for that matter. Incognito is the way to go when posting on the internet.

[Tperl]

07:19 AM on 11/18/2010

You mean like posting here? Muahahaha....that is a lovely scarf you are wearing today! muahahaha.

[bllnsinchnge]

06:48 AM on 11/18/2010

Pay the bill if you owe it, no lawyer needed to stop it. I used to have a bill collector call at work for a co-worker, I told the bill collector that he was in Fiji with his lottery winnings.

[LeftRight]

07:27 AM on 11/18/2010

Unless of course you cannot pay it through no fault of your own!

[Ed Baker]

11:10 AM on 11/18/2010

Whose fault is it if you lose your job and fail to have gainful employment? Is that the lenders doing? Should the lender pay for your failure? She promised to pay this money back with interest, not IF she keeps THIS job - or IF the economy is good.... she promised to pay - failure to pay has a provision in the loan agreement - it's simple. You turn in the car, it's sold, and you pay the shortfall. That's what grown ups do - it's called taking responsibility. All this other activity - which she will also be billed for - is a direct result of her non-compliance with her loan agreement.

[bannorhill]

10:00 AM on 11/19/2010

Whose fault is it if you fail to save some money and have a rainy day fund?

[Trittydi]

03:56 AM on 11/18/2010

A collection agency called my brother to ask about another sister. He told them to take a hike.

This needs to change. It'll be interesting to see how it's handled.
*

[Pandoras Folly]

09:56 AM on 11/18/2010

I had a buddy whose brother's debt collectors kept calling him trying to get in touch with the brother. He started recording the converstions and at the begning he would state his name Verbal Message transfer service fee is 15 dollars per minute. Well after about two months of this he sent the debt collectors a bill for something like 1500 dollars. He never go paid but they stopped calling him.

[Ed Baker]

11:11 AM on 11/18/2010

Anyone - including the debtor has the right to demand that they not be called - ever again.

[johnb123]

03:08 AM on 11/18/2010

A few years ago I had a debt collector who call me and ask if I would talk to my neighbor and deliver a message about their debt. I told them, I'm not doing your work, and hung up. In the 1990's one called me about a neighbor down the street and asked me to go tell them they were calling. I  hung up on them.

[outtopastur]

06:41 AM on 11/18/2010

The same thing happened to us last year. One of our neighbors was apparently in default on their mortgage and student loan. Their collectors kept calling for weeks and leaving *urgent* messages on our answering machine *insisting* that *we* have them to call them (they didn't have a phone). We just erased them. After a while, they finally stopped calling. By this time, our neighbors had already moved out and their home was foreclosed on.

Just another sad commentary on the state of this economy.

[Hank007]

07:38 AM on 11/18/2010

Next time send the collections agency a bill for your time, due in 30 days. When they don't pay, report them to a collections agency.

[Ed Baker]

11:21 AM on 11/18/2010

You have the right to tell them to put you on their do not call list - and demand that they never call you again. You can say this to anyone - and if it's a business, they can be fined if they call you even once more.