Oregon Collection Lawyer in Hot Water Over Suits

A leading collection attorney in Oregon is the target of action by the Oregon State Bar and is the defendant in at least two lawsuits filed by consumers over violations of the Fair Debt Collection Practices Act. The grievances are a part of a building chorus of calls against collection lawsuits filed on behalf of agencies and debt purchasers.

Derrick McGavic, head of The Law Offices of Derrick E. McGavic in Eugene, Ore., faces possible disciplinary action by his state’s bar due, in part, to some 35 official bar complaints filed against the firm in the past 10 years, according to local paper Willamette Week.

But the bar’s complaint against McGavic focuses on one case where he is alleged to have continued to contact a consumer after he was informed the consumer had retained legal counsel. In addition, McGavic is accused of seeking a default judgment in the case without properly notifying the defendant.

Kateri Walsh, a spokesperson for the Oregon State Bar, told insideARM that “an ethics case against McGavic has been approved for prosecution.” Walsh said that if McGavic is found guilty he could face a range of penalties, including public reprimand, suspension of his law license for a period of 30 days to five years, and disbarment.

McGavic faces two federal lawsuits over FDCPA complaints filed in January on behalf of consumers by Keith Karnes, a Portland, Ore. lawyer who has represented clients in suits against McGavic and other debt-collection attorneys. The suits, filed in U.S. District Court in Portland, allege that McGavic threatened consumers in initial contacts with jail.

McGavic did not return insideARM phone calls and his Web site Monday reported it was "currently closed for maintenance."

The actions against McGavic may be a reflection of efforts across the country to reduce the number of lawsuits filed against consumers by debt collectors and purchasers.

At the debt collection workshop held by the Federal Trade Commission in October of last year, both consumer and collection attorneys acknowledged lawsuit volumes are increasing (“Collectors, Consumers Disconnect at FTC Workshop,” Oct. 11, 2007). Karnes told the Willamette Week that he “is busier than he should be” in defending consumers against lawsuits.