Ask most people to name the streets in the neighborhood where they grew up and they’ll tell you Maple Lane or Sycamore Drive. Ask a military kid – ask this military kid – and she’ll mention Tank Destroyer Boulevard and Hell on Wheels Avenue. Years ago, if you drove down Tank Destroyer and exited the East Gate of Fort Hood, the neon signs advertising “zero down,” “E-Z credit,” or “low monthly payments” lit up the Central Texas sky like a discount aurora borealis.
Blog Posts Tagged with Debt
It’s called CROA – the Credit Repair Organizations Act – and it was put in place to protect people battling their way back from financial adversity. Given the long history of questionable practices in this sector, CROA makes it illegal to charge people upfront before services are rendered. It also bans misleading statements to credit bureaus about consumers’ credit records. There’s been lots of talk about the harm posed by false negative information in credit reports. But in an interesting twist,
Whooping it up can be fun, but hooping it up – requiring consumers to jump through hoops to exercise their rights under the Fair Credit Report Act – is illegal. That’s one message businesses can take from the FTC’s $3.5 million settlement with TeleCheck.
In an FTC action challenging allegedly illegal business practices by a payday loan operation affiliated with American Indian Tribes, a United States Magistrate Judge just issued a report and recommendation on the scope of the FTC Act. Attorneys will want to give the order a careful read, but here’s the need-to-know nugget: Over the defendants’ vigorous opposition, the Magistrate Judge concluded that the FTC Act “gives the FTC the authority to bring suit against Indian Tribes, arms of Indian Tribes, and employees and contractors of arms of
No, not the cherubic child star on reality TV. We’re talking about the serious repercussions of American Tax Relief's misleading claims about substantially reducing what consumers owed in taxes — and major mistakes some businesses make when it comes to the financial consequences of deception. A look at the settlement offers insights into the breadth of remedies available for violations of the FTC Act and related rules.
Let’s cut to the chase, Girlfriend. You’re one annoying you-know-what. And according to multiple lawsuits filed by the FTC, those robocalls you’re placing are big-time illegal.
You’ve heard the truisms. Never eat at a place called Mom’s. Never play cards with a guy named Doc. We’ve got another one for you: Think twice before doing business with a company called Legitimate Debt Settlement.
The charges outlined in the FTC’s lawsuits against a software business and seven rent-to-own companies are surprising — and OK, some might say a little creepy. Software on rented computers gave the companies the ability to hit the kill switch if people were behind on their payments. But according to the complaints, it also let them collect sensitive personal information, grab screen shots, and take webcam photos of people in their homes.
"Hey, I've never met you.
So don't get clever.
That's my number.
Robocall me never."
Never underestimate the creativity of marketers attempting to separate cash-strapped consumers from their last dollar. And never underestimate the FTC’s resolve to protect people from deception in tough economic times. Those are just two points to take from recent FTC law enforcement actions.
We've done a little renovating around the BCP Business Center. Nothing major like adding a rumpus room or finishing the basement. Just a few updates in response to your suggestions.
On classic episodes of the Tonight Show, affable sidekick Ed McMahon sought guidance from Johnny Carson's all-knowing Carnac character. But as demonstrated by a recent FTC law enforcement action — which involved a company's misleading reference to the late Mr. McMahon — you don't need a psychic to know that challenging deceptive debt collection practices remains a top priority.
If you haven’t already, hover up to your toolbar and bookmark the FTC’s Regulatory Review page. It’s your one-stop resource for what's coming up and what’s going down with Commission rules and guides of interest to your business and your clients. Recent announcements about the FTC's regulatory review schedule make it a must-read.
Imagine for a moment your ideal customer. They consider their choices carefully before buying. They keep their accounts current. When service is top-notch, they spread the word to friends and family. If there’s a glitch, they give you a chance to correct the problem before posting thumbs-down reviews. Now imagine you could “create” your own cadre of contented customers. Fantasy Land? It’s more real than you might imagine.
Last week saw FTC announcements involving allegations of foreclosure rescue fraud, deception aimed at people trying to resell their timeshares, complaints against payday lenders, and lawsuits against outfits claiming to help consumers behind on their car payments. Is there a theme here? You bet. But the message isn't just for companies engaged in practices targeting consumers struggling to stay afloat. There are words to the wise for businesses of any size and every stripe.
Tough federal and state law enforcement has turned up the heat on mortgage foreclosure rescue scams. So some operators are turning to auto loan modifications to make a fast buck on consumers in financial distress. In the first cases of their kind filed by the FTC, the agency is alleging that two unrelated California outfits charged hundreds of dollars in upfront fees, based on bogus claims they could reduce consumers’ monthly car notes and help them avoid The Repo Man.
Take the case of one person who borrowed money from a payday loan operation the FTC has taken to court for allegedly illegal practices. According to the FTC, the consumer was told that a $500 loan would cost him $650 to repay. But by slicing and dicing repayments in a way that generated undisclosed fees, the defendants allegedly tried to charge him $1,925 to pay off the $500 loan — and threatened him with arrest when he balked.
The FTC has filed another action against defendants who allegedly attempted to squeeze the last drop from homeowners already under water. This case, however, involves a disturbing new variation on foreclosure "rescue" operations.
If you have clients in the auto industry, you’ve seen the ads: “We’ll pay off your trade no matter what you owe . . . even if you’re upside down.” It’s an attractive claim to people struggling with their finances. But law enforcement settlements announced by the FTC with five dealers from around the country demonstrate the importance of giving people the straight story when making promises about trade-ins where negative equity is involved.
South Dakota can be lovely this time of year, but consumers struggling financially shouldn’t have to travel there to respond to actions filed against them in a tribal court that doesn’t have jurisdiction over their case. That’s what the FTC has alleged in its amended complaint against Payday Financial, LLC, a company that pitches its short-term, high-fee loans in TV ads and online.