Thursday, March 17, 2011

Derrick McGavic shut down by Kroger

Thanks, Erin Fitzgerald, for the head's up on this one.  John Kroger shut down the office of Derrick McGavic, one of the largest debt collection law firms in Oregon for "systematically ignoring debtor protections and rights afforded under the Oregon and Federal Debt Collection Protection Acts."  After representing countless clients against this firm over the years, I wholeheartedly agree.

Aggressive, illegal, tactics by debt collectors and their attorneys are increasingly common as consumer defaults on unsecured debts pile on.  Even the Wall Street Journal finds some of their practices questionable.  There is a growing legal backlash against these companies, as Midland Funding and their law firm Mann Bracken were forced to drop 10,000 cases in a Maryland class action.  Mann Bracken, previously a rival of Derrick McGavic shut down in 2010.  The FTC recently dinged debt collector West Asset Management for $2.8 million civil penalty for FDCPA violations.  The tide may be turning on debt collectors.  Nobody likes the man in the black hat, and it is easy points for aspiring politicians to come down on them.

Derrick McGavic's office handled collection for many large debt collection agencies in Oregon.  It is not clear at this time who will pick up the torch.


  1. I'm sure Daniel Gordon's office will pick up the torch - they are almost as bad and I can see them being shut down in the future too.

  2. Yeah, they've already been sanctioned for taking a default on a pro se after explicitly making a deal. I was looking for the link, but couldn't find it.