Federal Court Orders Collection Agency President to Pay $2 Million Civil Penalty


4/24/2017 2:32 PM

The $2 million payment will settle the Federal Trade Commission’s claims that the collection agency and its president violated the FDCPA.

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The U.S. District Court for the Eastern District of Texas – Sherman Division, at the request of the Federal Trade Commission (FTC), has issued a $2 million civil penalty against Timothy L. Ford, president and owner of Commercial Recovery Systems Inc. (CRS.)

“The court judgment resolves a case filed on the FTC’s behalf by the Department of Justice in January 2015, alleging that CRS’s collectors falsely claimed the company would sue debtors, garnish their wages, levy their bank accounts, or seize their property unless their debts were paid,” according to a news release from the FTC issued Monday.

The court also issued a permanent injunction banning CRS and the company’s president from the debt collection business in April 2016, according to the news release.

The FTC’s enforcement action against CRS and Ford were part of Operation Collection Protection.

The FTC concluded its Operation Collection Protection enforcement initiative targeting deceptive, illegal and abusive debt collection practices in January, ACA International previously reported. The program was established in November 2015.

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