Debt: The next big American crisis?

Hoffman: If you don't want to pay sir, that's fine. I'll just have to have you picked up.

The calls are threatening unsuspecting people across the country - pay this old debt or get thrown in jail. But that's not true. The calls aren't coming from cops in Maryland. Instead, we linked them this building in Buffalo, N.Y.

With hidden cameras, we follow signs to an office with an official sounding name: Final Claims Asset Locators. We're able to walk around inside for a few minutes, and see one person after another working the phones. And we hear this snippet of conversation.

Rhonda: There is going to be a detainer, sir, where you'll be brought to Maryland to face charges here.

It's the same kind of threat we heard on the phone down in Texas. She's talking as if she's with law enforcement.

Rhonda: So what we'll do is, we're going to have you picked up.

And her voice sounds awfully familiar, too.

Rhonda: Otherwise, they're gonna have you picked up.

Looks like we're in the right place. And remember the so-called attorney named Andrew Brzyski? Here's the same guy we've seen driving around in a car registered to Andrew Brzyski.

But what exactly is going on here?

We watch the building and notice a pattern - frequent trips across the street to this supermarket. And when we follow him in one day, it's clear he didn't come here to shop for groceries.

Brzyski: It's actually three.

He's here to collect cash. At a Western Union counter.

Video   How debt pays Harvard's Elizabeth Warren explains how credit card companies make a big chunk of their profits. Dateline NBC

Brzyski: Do you have more hundreds?

Could this be money wired from people who were tricked into thinking they were about to be arrested? People like the Texas couple who fled their home in fear... Or Vicki Herrington, who got those threatening calls in the wake of her son's cancer treatment? We watch the cash come in. So we decide to follow the money and find out who's behind the company that calls itself Final Claims Asset Locators.

We trace the firm to this man - Tobias Boyland - and find out his business seems to be operating under other names as well.

And he appears to have another enterprise going. In this video posted on the Web, Boyland goes by the nickname "Bags of Money," and apparently fancies himself some kind of show-biz entrepeneur.

Boyland: I didn't realize so many beautiful women in town really just wanna to do their thing. I have to create a vehicle for them to do their thing!

And check out this van, a company car, emblazoned with the words "Thug Motivation" — perhaps a fitting slogan when you consider that Boyland is a convicted felon. He and company co-founder, Dorian Wills, served time in prison for armed robbery before opening their debt collection business. That may seem surprising, but it's not to attorney John Fugate.

Chris Hansen: So there's nothing to check the background of somebody who wants to go out and buy large amounts of debt which include people's very private financial information.

John Fugate: That's right. Anybody with two nickels to rub together can buy a debt portfolio and set up and start collecting the debts.

Boyland's operation is legally incorporated, and we obtained documents showing he's been in the debt-buying business for years. But Final Claims Asset Locators is not a member of the industry trade group.

We wanted to learn more about Boyland. We track him to this house in a rundown Buffalo neighborhood. In the driveway-- a shiny black Hummer, another company car.

We follow him as he drives the Hummer around town, on fall mornings, and snowy winter days. He seems to have plenty of time on his hands. We watch him run errands, visit the dentist, eat lunch at a pancake house.

And occasionally, he stops by the office.

Back at the house, we decide to pay him a visit and ask about his debt collection business.

Chris Hansen: We got a big mean dog.

We hear people inside. But when we come knocking, no one answers the door. So we head over to corporate headquarters. We arrive to a busy office.

Chris Hansen: Hey, how are you? Chris Hansen with Dateline NBC.

And the first person we approach is this man, Dellian Sharp. He's a debt collection trainer for the operation.

Chris Hansen: I needed to talk to Mr. Brzyski or Mr. Boyland.

In debt? Know your rights Debt Collection FAQs: A Guide for Consumers | Facts Read the Fair Debt Collections Practices Act (.pdf)

We later understand why he might have left so quickly. At the time we shot this tape, Sharp was awaiting sentencing on federal charges of bank fraud - apparently unrelated to his job here. He has since been sentenced to two years in federal prison.

Chris Hansen: Where did Mr. Sharp go? Is he around?

And that woman whose voice sounded so familiar on our previous visit?

Collector: We'll go ahead and have you picked up.

She covers her face and hurries away. But some collectors man their stations, making their calls.

Chris Hansen: Ma’am, do you know where Mr. Brzyski is?

No one will say much, or watch the video clips of our investigation we brought along.

And after a few minutes, we're asked to leave.

Helpful links for consumers Facts for Consumers with Debt (Federal Trade Commission) Managing Your Debts: How to Regain Financial Health (Consumer Federation of America)

Security: I don’t care what you got there, you need to leave the premises, sir.

Chris Hansen: So who are you, sir?

Security: None of your business.

Chris Hansen: I'm telling you, I think that someone from this company is going to want to see this video.

Security: I don't care, sir. Have a great day. Goodbye.

On the way out, we're told to contact the company attorney.

Chris Hansen: Well, who is the attorney, then?

Downstairs in the lobby, a few collectors stop to look at our videotape. And up walks the so-called company attorney, Andrew Brzyski.

Chris Hansen: Mr. Brzyski, Chris Hansen.

But he doesn't acknowledge the name...

Chris Hansen: Who are you, then?

Brzyski: I don't have to tell you anything.

…and won't answer our questions.

Chris Hansen: What I do want to know about some of the tactics used at this company. Where did you go to law school, Mr. Brzyski?

Brzyski: So you don't want to talk to me.

Apparently we're not the only ones raising questions. We found out that New York and federal law enforcement officials — including the FBI — have been given detailed information on Boyland and company. But so far, they're still in business. Police in Maryland, who are being used as a front by the group, aren't able to launch an investigation because the alleged crimes were not committed in their jurisdiction.

Baker: Bottom line is, I don't know that we are going to get them at all.

Where to turn for help Consumer Action, a non-profit education and advocacy organization for consumers Federal Trade Commission: Facts for consumers i-Village debt support group: Support and information from others dealing with debt National Association of Attorneys General: Find out how to contact your state attorney general to make a complaint about a debt collector National Association of Consumer Advocates, a nationwide organization that represents victims of abusive business practices National Consumer Law Center, an organization that defends consumers and promotes marketplace justice Bud Hibbs: Consumer advocate site with tips for dealing with debt collectors

The debt collection trade group, which believes most collectors follow the law, says the industry is so vast it's virtually impossible to monitor each company.

Rozanne Anderson: We are trying to figure out ways to remove the bad actors.

But after seeing footage of our investigation, the trade group's chief attorney acknowledges that more needs to be done.

Chris Hansen: Is there a gap in the regulation? Is enough being done?

Rozanne Andersen: What we've seen today, I think the answer is clear.

Since our report first aired in March, some steps have been taken to crack down on debt collectors who violate the law.

Andrew Cuomo: This is one of those areas that cries out for more scrutiny and more regulation. 

In New York, a national mecca for debt collection operations, Attorney General Andrew Cuomo has taken a series of actions.

Andrew Cuomo:

We are looking to stop the most egregious activity first.

Chris Hansen: What offends you most about the activity that you've seen?

Andrew Cuomo: You have all sorts of innocent people who've been caught in this web, who didn't owe anyone anything. They use these-- these terrible, aggressive, terrorist tactics that also happen to be illegal.

Remember LHR?

Rob: We bring in a lot of money, so  it's, like, it's worth it for people to still be illegal.

The New York AG's office launched an investigation into LHR and nearly a two dozen collection agencies in the region.

And Final Claims Assett Locators?  It was shut down in June, along with other debt collection operations run by Tobias Boyland. In an early-morning raid, police searched the offices where Dateline had gone looking for Boyland, investigators seized computers and dozens of boxes of documents.

At Boyland's home, police say they found a sizeable weapons cache, including an AK-47 rifle and a loaded semi-automatic pistol that police say he was carrying during the raid.

Boyland was taken away in handcuffs and pleaded not guilty to felony weapons possession charges that alone could land him in jail for 15 years or more if convicted.

Boyland was taken away in handcuffs and pleaded not guilty to a felony weapons possession charge that alone could land him in jail for up to 15 years if convicted.

Judge: Mr. Boyland, you do at least understand what you're being accused of, right?

Boyland: I believe so, sir.

Video   ‘The debt collection industry is exploding’ New York Attorney General Andrew Cuomo talks with Dateline NBC’s Chris Hansen about his efforts to crack down on debt collection agencies that use illegal tactics to threaten consumers, and what debtors should know about their rights. MSNBC

In a separate legal action, the AG's office accuses Boyland and three other company officers of intimidation and extortion consumers in New York and throughout the nation have been abused and bilked.

Cuomo says his office is pursuing civil and criminal action against Boyland and company.

Andrew Cuomo: This is a company that was flagrantly violating the law.  They were threatening.  They were posing as law enforcement officers.  They were intimidating. They were making money.  People were paying to stop the terrorism.

Chris Hansen: Give me a sense for how much money Boyland and his crew were making.

Andrew Cuomo: Chris, at the end of the day, it's likely that they made millions of dollars.

Chris Hansen: So they were cleaning up.

Andrew Cuomo:  Oh yes.

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