By CAROLYN THOMPSON
Associated Press

BUFFALO (AP) - Clients have come to attorney Kenneth Hiller with complaints about debt collectors who've threatened them with arrest or told their neighbors and bosses about their unpaid bills.

But Hiller had never seen a letter like the one Justin Thompson received.

"Dear S---," began the attempt to collect a $16.39 debt from an old record-club membership.

The profanity was spelled out in the letter - which arrived in an envelope addressed to "S--- Face."

"I've never seen anything quite so brazen," the attorney said.

Under federal regulations, debt collectors are not allowed to use profanity to collect a debt, Hiller said, nor are they supposed to threaten legal action over such a small amount, as the letter does. He was planning to sue the sender, Nationwide Collections Inc. of Fort Pierce, Fla., this week.

Nationwide President Phillip McGarvey said the October 2007 letter was automatically generated after his company bought about 350,000 Columbia House accounts.

"S--- Face" is the name under which the account was opened, his research found.

"That's the way the coupon was completed and the goods were sent," said McGarvey, who added that he didn't even have a name to send a letter of apology to when the letter came to his attention.

"Somebody played a prank, and obviously I regret very much that we've been tarnished by it," McGarvey said Friday.

Hiller's client, who lives in Derby, has signed an affidavit saying he never signed up for the music-club membership under that name.

"It looks bad to the observer who is not familiar with the industry," acknowledged McGarvey, "but anybody who understands the volume would understand how this could happen.... You've also got people filling in famous people's names."

Nationwide has millions of accounts, and those with balances as small as this one would never pass through human hands once they are imported into the computer system, he said.

Hiller said debt-collection agencies should have procedures in place to prevent violations.

"Either this was something malicious," Hiller said, "or a terrible error that should have been prevented by some sort of check system they have before the letters go out."

Hiller said he had not yet determined the amount of damages he will pursue.