Blog Posts Tagged with Finance

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Hat trick? FTC charges violations in auto loan servicing, debt collection, credit reporting

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

CARdinal rules for online advertisers

If there are strings attached to a particular deal, those material terms and conditions have to be clearly and conspicuously disclosed up front. That well-settled legal principle applies to online ads. It applies to car ads.  And so (QED) it applies to online car ads. That should come as no surprise to savvy marketers. But two FTC settlements underscore it, highlight it, and festoon it with multi-colored pennants for members of the auto industry — and other advertisers, too.

Magistrate Judge's finding: Payday lenders covered by FTC Act even if affiliated with American Indian Tribes

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

The truth is out there

Earlier this week was the 66th anniversary of the so-called Roswell UFO incident.  No, Mulder and Scully aren't on temporary assignment to the FTC and we don’t have any “now it can be told” government news on the subject.  But we can offer insights into what happening on MARS:  the Mortgage Assistance Relief Services Rule.  As X Files fans would say, "The truth is out there," but one place it appears to be lacking is in promotions making overhyped promises to homeowners in financial trouble.

FTC's record-setting Do Not Call settlement: 4 tips for business and one candid suggestion

Yesterday’s 10th anniversary of the National Do Not Call Registry was a good time to reflect on a decade of progress.  But to paraphrase Thomas Jefferson (or Patrick Henry, Irish statesman John Philpot Curran, or whoever else said it), eternal vigilance is the price of an uninterrupted dinner hour.  A record-setting $7.5 million settlement with a national mortgage broker demonstrates the FTC’s commitment to the fight against

Not an honor to be nominated

‘Tis the season for the entertainment industry to hand out statuettes for notable achievement.  It’s also the time of year when the FTC singles out industries "nominated" by consumers for actions of a less admirable nature.  According to the just-released Consumer Sentinel Network Data Book, the FTC received more than 2 million complaints from consumers in 2012 — the most ever.  What industries show up on the one Top 10 list that companies want to avoid?

Shell game?

“Payment processing” used to involve standing in the checkout line and handing the cashier your pennies.  (Remember checkout lines?  Remember cashiers?  Remember pennies?)  In a lawsuit filed in federal court, the FTC alleges that Ideal Financial Solutions and more than a dozen individual and corporate defendants used an “intricate web of concealment” to game the payment processing system in a way that resulted in more than $25 million in unauthorized credit card charges and bank account debits.

Here Comes Money Boo Boo

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.

Down in the dumps(ter)

Every business generates paper destined for the circular file.  But if documents contain sensitive information, don’t toss them out in a way that could invite unauthorized access.  According to the FTC’s lawsuit against PLS Financial Services, PLS Group, and The Payday Loan Store of Illinois, loan applications, credit reports, and other confidential paperwork found their way into dumpsters near the defendants’ locations.  The settlement applies just to the entities specified in the order.  But is it a good time to take a look at h

Trash Talking

Some things you’d expect to find in a trash can:  last night’s potato peelings, the casserole that looked so promising in the cookbook photo, and Oscar the Grouch.  But if you run a business, the one thing you don’t want in the dumpster behind your office is paperwork containing sensitive information about your customers.  Just ask PLS Financial Services, PLS Group, and the Payday Loan Store of Illinois.

Plastics, Benjamin

“I just want to say one word to you, Benjamin.  Plastics.”

During the cocktail party scene in the classic movie “The Graduate,” that’s the advice Ben Braddock got for mapping out his future.  It wasn’t such a bad tip after all since so much stuff — including the pocket money we use for day-to-day expenditures — has gone plastic.

Check that check

At the BCP Business Center, we offer tips on how to stay on the right side of the law.  But we also do our best to spread the word about the latest frauds targeting businesses — and this one’s a piece of work.  If your company accepts checks or online payments, you’ll want to be on the look-out for a scam that could leave you with a stack of worthless paper.

Some sprucing up

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.

Collection deception

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.

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