FTC and New York Attorney General Reach Settlements in Long-Running Debt Collection Scheme

The individuals and companies are banned from the debt collection industry and buying or selling debt.

3/22/2018 1:00 PM

News
FTC and New York Attorney General Reach Settlements in Long-Running Debt Collection Scheme

The Federal Trade Commission and New York Attorney General have permanently banned several individuals and companies from debt collection, concluding proceedings in the U.S. District Court for the Western District of New York dating back to complaints filed in 2015.

Under the settlement orders entered March 20, “the operators of a deceptive and abusive debt collection scheme are banned from the debt collection business and from buying or selling debt under settlements with the Federal Trade Commission and the New York Attorney General’s Office,” according to a news release from the FTC.

The original complaints against the defendants allege they used threats and abusive language, “including including false threats that consumers would be arrested or sued, to collect supposed debts,” according to the news release. The court halted the operation pending resolution of the case.

Legitimate debt collectors operate lawfully and respectfully and take great efforts to ensure compliance. On the other hand, fraudulent and unlawful actors posing as debt collectors have no interest in complying with the law; instead they harm consumers and generate a mistrust of debt collectors which unfairly tarnishes the entire industry.

It is critical that the FTC continue to prioritize egregious conduct and debt collection scam operations that cause the most harm to consumers, and differentiate those bad actors from the overwhelming majority of debt collectors who operate lawfully, take consumer protection seriously and play a unique and much-needed role in our credit-based economy.

ACA International supports industry and law enforcement efforts to target these bad actors and eradicate them from the consumer financial marketplace.  ACA has long led the effort to stop criminal debt collection activity and has worked consistently with the FTC and other regulators to help them understand the complex issues that legitimate debt collectors face.

ACA looks forward to working with the FTC and other government agencies to continue to rid the marketplace of bad actors who have no intention of complying with the law, causing substantial harm to consumers and legitimate debt collectors.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

FTC and New York Attorney General Reach Settlements in Long-Running Debt Collection Scheme

The Federal Trade Commission and New York Attorney General have permanently banned several individuals and companies from debt collection, concluding proceedings in the U.S. District Court for the Western District of New York dating back to complaints filed in 2015.

Under the settlement orders entered March 20, “the operators of a deceptive and abusive debt collection scheme are banned from the debt collection business and from buying or selling debt under settlements with the Federal Trade Commission and the New York Attorney General’s Office,” according to a news release from the FTC.

The original complaints against the defendants allege they used threats and abusive language, “including including false threats that consumers would be arrested or sued, to collect supposed debts,” according to the news release. The court halted the operation pending resolution of the case.

Legitimate debt collectors operate lawfully and respectfully and take great efforts to ensure compliance. On the other hand, fraudulent and unlawful actors posing as debt collectors have no interest in complying with the law; instead they harm consumers and generate a mistrust of debt collectors which unfairly tarnishes the entire industry.

It is critical that the FTC continue to prioritize egregious conduct and debt collection scam operations that cause the most harm to consumers, and differentiate those bad actors from the overwhelming majority of debt collectors who operate lawfully, take consumer protection seriously and play a unique and much-needed role in our credit-based economy.

ACA International supports industry and law enforcement efforts to target these bad actors and eradicate them from the consumer financial marketplace.  ACA has long led the effort to stop criminal debt collection activity and has worked consistently with the FTC and other regulators to help them understand the complex issues that legitimate debt collectors face.

ACA looks forward to working with the FTC and other government agencies to continue to rid the marketplace of bad actors who have no intention of complying with the law, causing substantial harm to consumers and legitimate debt collectors.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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