Record-breaking refund programs are usually cause for celebration. But the FTC’s largest-ever debt collection redress case offers sobering insights into the lengths some companies will go to illegally squeeze the last dime out of people already in financial distress.
Blog Posts Tagged with Debt Collection
Beef on weck, frozen custard – and one of the largest debt collection industries in the U.S. Those are some of the things Buffalo is known for. That’s why the FTC kicked off its continuing Debt Collection Dialogue in Buffalo on June 15, 2015.
It’s a text that would make most people take notice: ALERT ALERT ALERT .. YOUR PAYMENT WAS DECLINED DUE TO AN INSUFFICIENT ACH TRANSACTION…CALL 866.597.3075. But it wasn’t really an alert. There wasn’t a declined payment. And an “insufficient ACH transaction” isn’t even a real thing.
It was a deceptive text message sent by debt collectors to illegally lure purported debtors into contacting them.
Buffalo is famous as the home of the Bills, but it’s also home to many bill collectors. The FTC is sponsoring a series of Debt Collection Dialogues across the country and the first stop will be Buffalo on June 15, 2015, in conjunction with the New York Attorney General’s Office. If debt collection practices are of interest to you, fry the wings, take out the hot sauce – and mark your calendar for June 15th.
As the name suggests, Green Tree Servicing was supposed to service homeowners’ mortgages by collecting and crediting monthly payments. But according to a $63 million settlement announced by the FTC and CFPB, rather than service, Green Tree gave many homeowners the business.
Like juggling chain saws or using a Ming vase as a sippy cup, some things are just too risky to be reasonable. Here’s one to add to that list: posting unencrypted financial information about 55,000 consumers on a website available to anyone with an internet connection.
“What’s so funny ‘bout peace, love, and understanding?” Elvis Costello asked that musical question back in the day. The Memorandum of Understanding between the FTC and CFPB – which the two agencies just reauthorized for a three-year period – shows that when it comes to protecting consumers, ensuring a vibrant marketplace for financial products and services, and using resources efficiently, we're in harmony.
In the 1990s, the Buffalo Bills famously lost four Super Bowls in a row. Now the Buffalo, New York area has achieved another inglorious four-fer: Two cases announced today makes a total of four FTC suits in less than a year against Buffalo-based debt collectors accused of abusive tactics.
If you’re in the debt collection business, it’s up to you to comply with the Fair Debt Collection Practices Act. If not, you might find yourself looking for another line of work.
As the saying goes, two heads are better than one. That’s so true when it comes to the thorny issues surrounding debt collection practices. Unlawful debt collection practices are a long-standing source of consumer complaints. So, it only makes sense to have two cops on the beat; the FTC and the Consumer Financial Protection Bureau work together to enforce the Fair Debt Collection Practices Act and keep debt collection practices lawful.
The FTC has been taking a 360° look at debt collection and credit reporting lately – workshops, reports, education, and law enforcement. On October 23, 2014, we're hosting a roundtable in Long Beach, California, with the Consumer Financial Protection Bureau to get perspectives on how these issues affect Latino consumers, especially those who have limited English proficiency.
The 2011 science fiction movie “The Adjustment Bureau” dealt with a dystopian future (Is there any other kind in sci-fi movies?) where mysterious forces plot against individuals. But for many consumers, Regional Adjustment Bureau, a Memphis-based debt collector, made their day-to-day reality just as dystopic.
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.
Sometimes good things come in threes, like Musketeers, Bronte sisters, and Stooges. (Shemp doesn’t count.) But the FTC’s complaint against Consumer Portfolio Services charges the company with three distinct sets of violations – unlawful auto loan servicing, illegal debt collection, and violations of the Fair Credit Reporting Act’s Furnisher Rule – all of which spelled triple trouble for consumers. But there’s relief on the way in the form of a
We like solving puzzles – from crosswords and anagrams to that byzantine conspiracy wall constructed by Claire Danes' character on "Homeland." So it doesn't faze FTC staff when companies use complicated corporate structures to hide what they're up to. Those skills came in handy in unraveling how debt collector Asset & Capital Management Group and its host of related businesses were violating Section 5 of the FTC Act and the Fair Debt Collection Practices Act. The prize for untangling this puzzle:
We try to keep a sense of humor about lawyer jokes, but given the harm to consumers, it's no laughing matter when debt collectors mimic attorneys. The Fair Debt Collection Practices Act and the FTC Act establish that it's illegal for debt collectors to falsely claim to be attorneys or to suggest a bogus connection to law enforcement. An FTC settlement with an outfit called Goldman Schwartz and related companies puts the whole kit and kaboodle out of
That “Inc.” after a company’s name can offer certain legal protections, but immunity from liability under the FTC Act isn’t necessarily one of them. If you’re a corporate officer or number them among your clients, a recent settlement with two people involved in a debt collection operation should underscore that message.
When the FTC sued payday lender AMG Services in 2012, the complaint charged the defendants with a host of deceptive and unfair practices aimed at consumers already struggling to make ends meet. Undisclosed fees and debt collection calls that threatened arrest were just a few of the allegations. The defendants countered with an interesting defense: that their affiliation with American Indian tribes rendered them beyond the reach of the FTC Act. A U.S.
The Fair Debt Collection Practices Act lays out some pretty clear dos and don’ts for debt collectors. Do identify yourself as a debt collector. Do follow up within five days of your initial communication with a written notice setting out the amount of the debt, the creditor's name, and details about how consumers can proceed if they dispute the debt. Now for some don’ts: Don’t imply a government affiliation. Don’t accuse people of a crime or threaten them with arrest.