Plaintiffs in three states have recently filed privacy lawsuits over what may be a new form of cyber-bullying -– using the Internet to harass debtors, in one case even creating a website in the debtor's name.

The defendants include a Phoenix car loan company, Auto Financing Network (AFN), and two collection agencies working for other auto lenders, Assets Recovered and Universal Tracing Services. All of the alleged Internet harassment has occurred since January, suggesting an unnerving new trend in the noble profession of debt collection.

In two of the cases, the creativity of collection agencies allegedly extended to intruding on the MySpace page of one debtor and the MySpace page of another debtor's daughter.

Jennifer Dicks's troubles began when she missed payments on a Chevrolet Cavalier she had bought from AFN. According to a complaint filed April 24, the lender used a hidden GPS device to locate the car and repossess it in January.

Dicks then made a payment to regain possession but after she again missed a payment, AFN allegedly created a website with the domain name "jenniferdicks.com.” The site's content is identical to that of AFN's website (goafn.com) except for the heading, which states, “Jennifer Dicks isn't paying for her Cavalier!”

“Because Defendant uses Plaintiff's full name, and references her private financial situation, as well as her automobile, this action amounts to an invasion of privacy, an intrusion into private affairs, and public disclosure of private facts,” the suit says.

The "jenniferdicks.com" domain name is registered to AFN President Michael Fischer, a co-defendant in the case who allegedly harassed Dicks with text messages.

In one of the MySpace cases, a Michigan auto lender hired Assets Recovered to collect overdue payments on a 2005 Chevrolet Impala from Paula Newland of Edwardsburg, Mich. The collection agency's methods allegedly included “Posting information regarding Plaintiff's indebtedness on Plaintiff's 'MySpace' page” and “Using or threatening to use a 'shame automobile' and 'camp out all weekend' in front of Plaintiff's house.”

Newland says in her complaint that both those methods violated her privacy and the Michigan Collection Practices Act, which prohibits “Using a shame card, shame automobile, or otherwise bring[ing] to public notice that the consumer is a debtor.”

The alleged shaming of James Ricobene, who sued Universal Tracing in Chicago earlier this month, was less direct. According to his complaint, a senior investigator for the collection agency posted a message on his daughter's MySpace page asking her to “contact our office immediately so we can discuss the peaceful recovery” of his 2007 Mercedes GL450.

The suit identifies JP Morgan Chase Bank as the lender on the vehicle. “Failure to contact me will result in further action against your father,” the investigator, Chris Flanagan, warned Gina Ricobene.

Because friends and family members saw the MySpace message, James Ricobene says he was “humiliated, embarrassed and suffered substantial emotional distress.” He also alleges that “Chase was aware that Universal used this method of collecting debts and repossessing collateral because it was an effective collection practice.”

In an e-mail sent to the TechSpank website, Universal Tracing denied the allegations, saying it “never had an employee by the name of Chris Flanagan” and no employee “has ever posted anything on anyone's MySpace page ... We are also preparing a countersuit against both James Ricobene and Gina Ricobene.”

Gina Ricobene filed a separate suit against Universal and Chase. “She is not responsible for the debts or acts of her father,” it says.

By Matthew Heller
4/30/09