Woman sues debt collector over husband's death

http://www.cnn.com/2009/LIVING/12/10/debt.collector.lawsuit/index.html

By Rich Phillips, CNN
December 10, 2009 11:57 a.m. EST

Tampa, Florida (CNN) -- Dianne McLeod recalls her husband, Stanley, getting so visibly upset when the debt collectors called that she had to take the phone away from him. She believes constant harassing phone calls and other tactics eventually killed him.

"I think they were a major contributor to his death because of the stress and what I saw it doing to him," she said.

McLeod is suing her mortgage company, Green Tree Servicing, for the wrongful death of her husband. McLeod said she thinks he would be alive if not for the stress caused by Green Tree's debt collectors. She said they sometimes called up to 10 times a day and also called the McLeods' neighbors.

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Stanley McLeod had a heart condition and in 2002 was airlifted to a hospital after a second heart attack. He went on disability and Dianne McLeod says they fell behind about three months on their mortgage payments.

This is a message left on the their home answering machine, allegedly by a male Green Tree representative:

"Stanley McLeod, you need to call Green Tree and get your act together and make your payments on your mortgage and quit playing these games.

"Why don't you have that helicopter pick you up and bring that payment to the office?"

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Debt collection is regulated by the U.S. Federal Trade Commission, which forbids harassing consumers. Companies can be fined $16,000 per incident. This year, as the economy plunged, consumer complaints shot up. More than 45,000 complaints had been received by the FTC through the end of June, up about 20 percent over last year.

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The FTC said it receives more complaints about debt collectors than any other industry. Complaints are also filed directly with attorneys general in all 50 states, which can open state investigations. Of the 45,000 complaints received by the FTC in 2009, the agency opened one investigation.

According to FTC officials, their primary role is to be a backstop to lawsuits brought by consumers, which is the primary way to fight the alleged abuse.

"We don't have the manpower to individually investigate all of the complaints," said Tom Pahl of the FTC's division of financial practices.

"We try to target the worst actors," he said.

The FTC urges consumers with complaints to report them to their state attorney general, to the FTC and to consider filing suit against the company they believe is harassing them.

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