Who foretold the prophecy?
Saltzman. He's in accounting.
(South Path, World of Warcraft)
seems to fit.
I suspect the reason they sign them is 1) excited about the opportunity to sign a recording deal regardless of the risks and being told, "don't worry, we'll take care of you, 2) not having the money to hire a competent contract attorney in the first place.
Given the rise of alternative means of connecting with an audience you can see why we so often hear about artists forgoing relationships with major labels.
In the "old days" labels used to develop talent. Not so much anymore. Before you can even get the notice of a major label you have to be able to show that you can attract people to your shows, move your own merch, and sell your own CDs/audio tracks. Given this shift in the music industry I am moderately surprised that artists still sign deals with major record labels.
The Fair Debt Collections Act (http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf) specifies the rules for practices that are allowed. The challenge is that say a company violates this practice, the person whose rights have been impinged upon then has to decide if it is worth the cost to pursue action.
While I haven't had to deal with this very often I have had a couple instances where I disputed a debt claim. The challenge is that even if you dispute the claim the collection agency doesn't care. Once they've had the account transferred to them it just goes in the harassment hopper. In my experience if you email or snail mail them, even if you cite the Fair Debt Collections Act you will be ignored. However, I have found that if you send your response by registered mail (someone has to sign for it), the collection agency cannot pretend they didn't receive it. I don't know if getting the registered mail flags the account as someone that is serious about taking action, but the two times that I have disputed a debt, sending the registered letter and noting violating actions put an end to the harassment .
The irony in the case of this story (company that is washing their hands of the problem) and the company handling the washing is just too sweet.
Neutrinos have bad breadth.