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Oregon Shuts Down Debt Collection Law Firm. Attorney Loses License.

Oregon Attorney General John Kroger today announced an agreement that shuts down a Eugene-based law firm that was the subject of dozens of complaints about its debt collection practices. In addition to closing down McGavic & Finney PC, the settlement requires founding partner Derrick E. McGavic to pay $70,000 and surrender his license to practice law.

“At a time when many Oregonians are struggling to manage their debt, the Department of Justice is committed to holding unscrupulous debt collectors accountable,” said Keith Dubanevich, Chief of Staff and Special Counsel to Attorney General Kroger.

The Department of Justice started investigating McGavic and his partner Kristan Finney after receiving more than 90 complaints against their law firm. McGavic was simultaneously undergoing an investigation by the Oregon State Bar.

McGavic & Finney specialized in representing national debt collectors that buy defaulted consumer obligations in massive quantities on the secondary market – often for pennies on the dollar.

Consumer complaints filed with the Oregon Department of Justice accused McGavic of systematically ignoring debtor protections and rights afforded under the Oregon and Federal Debt Collection Protection Acts. For example, McGavic allegedly misidentified or purposefully confused the identity of creditors in documentation to delay consumers’ response and thus increase fees and interest payable to McGavic and his clients.

Notices issued by McGavic allegedly omitted specific information related to the amount of the defaulted debt and failed to provide proper verification of debts when requested by consumers. Similarly, McGavic allegedly repeatedly called debtors who had requested in writing not to be called.

The Department of Justice’s investigation also uncovered McGavic’s pattern of falsifying fee affidavits in Motions for Default Judgments by claiming services he did not perform. In addition, McGavic allegedly provided his office staff with a schedule to be used to arbitrarily increase the fees claimed – depending on the amount of money claimed or the venue of the action.

See also  Derrick McGavic Bought My Debt, Got Judgments Against Me and The Was Disbarred. Do I Still Have to Pay? - Mary

The agreement filed March 16 in Lane County Circuit Court requires Derrick McGavic to pay $70,000 to the Oregon Department of Justice to reimburse the cost of the investigation; dissolve the law firm of McGavic & Finney, PC; and resign from the Oregon State Bar.

McGavic is further prohibited from acting as a debt collector or operating a law firm or a collection agency in the State of Oregon.

Kristan Finney may continue to operate under a different business or firm, subject to numerous stringent injunctive provisions specified in the settlement agreement.

Senior Assistant Attorney General Gregory Smith handled the case for the Oregon Department of Justice.

Attorney General John Kroger leads the Oregon Department of Justice. The Department’s mission to fight crime and fraud, protect the environment, improve child welfare, promote a positive business climate, and defend the rights of all Oregonians.


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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


  • Hello, I am another  victim of this scam job predator McGavic. I was served 20 pages of interagatories stating if I did not comply with their demands to answer all their interogating questions basically strip searching me of all my assets within 20 days of receiveing their served papers to me that I would be in contempt of court ..Which of course means jail time.

    I was given a court case number from the circuit court of mairon county making it look like it came from the court themselves with a court case number again making it  look like ti was a judgement against me!!
    I found out today March 19,m 2012 that it was not a judgement and the court has not record o fthis interagorie of me!!

    It is simly a strong arm tactic to get personal info without a legal right to do so..I want to sue these screw balls for sure!! Is it too late to file a complaingt or get on board with the powers that be?

    • It brings up a good point that people should check. I’ve read about a similar technique being used in Canada but not so common in the U.S. Would you be willing to scan the page with the fake court number for me as an example?


  • Mary, unfortunatly yes you will still have to pay the debt, i am with you though. he bought bought bad debt and uncollectable debt and scammed his way through the system screwing over you, me and millions of others. i have been online and the phone at the same time all day long, i have talked to some high powerd attorneys in oregon and they all say he has a judgement, so you and i will still have to pay even though we got scred and scamed. sound like the AG’s office is only half done with thier work. Now they need to relieve our debts for mcgavic’s wrong doing. we are entitled to $1000.00 per time that mcgavic broke the law and commited a crime against us. so he owe;s me personally about $250,000.00 but im 100% sure my call log will accuratly verify that he owe’s me more then that.
    sorry mary yes you have to pay, and so will i. call john kroger, tell him we are only half done.

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