Trials & Litigation
Did Collection Firm ‘Shake Down’ Millions?
Posted Aug 7, 2008, 04:22 am CST
By Molly McDonough
An Orlando, Fla., civil recovery firm is facing a federal lawsuit accusing it of sending millions of letters across the country in an alleged effort to shake down shoppers.
Palmer Reifler & Associates, which sends between 80,000 and 120,000 demand letters a month, is accused in the potential class action of mail and wire fraud for sending threatening letters on behalf of retailers to the likes of Veronica Kelly of Allentown, Pa., whose daughter was detained with a friend who was accused of shoplifting at JCPenney, the Daily Business Review reports.
Charges were dropped in Kelly's case, but that apparently didn't stop the letters and phone calls, first demanding $202, then $477.
The firm maintains its practices are well within the law and has defended itself against litigation elsewhere, the Business Review notes.
The suit, filed June 26, seeks treble damages under RICO.
Kelly tells the Business Review, "When these letters first started coming, my daughter and I both lived in a constant state of anxiety and fear. I felt as if they were trying to take advantage of me and extort money from me without any justification. I knew I had to fight back."
Earlier:
ABAJournal.com: "Fla. Law Firm Criticized for Collection Efforts Against Accused Shoplifters"
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