Regulators’ enforcement initiative includes two complaints on alleged illegal debt collection actions.
9/29/2020 12:00
The Federal Trade Commission, along with more than 50 federal and state law enforcement partners, announced a nationwide law enforcement and outreach initiative on illegal debt collection practices.
The initiative “encompasses more than 50 enforcement actions against debt collectors engaged in these illegal practices brought by the FTC, three federal partners, and partners from 16 states,” according to a news release from the FTC.
It includes five FTC law enforcement actions, including two newly announced cases and settlements in three prior actions, the FTC reports. “The two new FTC cases allege that companies were trying to collect debts they cannot legally collect or that a consumer does not owe,” according to the news release.
The operation also includes two cases filed by the Consumer Financial Protection Bureau and three criminal cases brought by the U.S. Department of Justice and U.S. Postal Inspection Service. States reporting actions as part of the operation include Arizona, California, Colorado, Connecticut, Florida, Idaho, Illinois, Indiana, Massachusetts, New Mexico, North Carolina, North Dakota, New York, Ohio, South Carolina and Washington, according to the FTC.
In addition to law enforcement actions, state and local consumer protection agencies across the country are joining the FTC in rolling out new information to help consumers know their rights when it comes to debt collection and what steps to take if they receive a call trying to collect on a debt that they do not recognize. The FTC has also created a new online dashboard with information about reports received from consumers.
The FTC recently filed two new cases as part of the initiative:
- In a case filed in the U.S. District Court for the District of South Carolina, the FTC alleged that National Landmark Logistics LLC and its operators collected more than $12 million from consumers through illegal debt collection practices. The FTC’s complaint alleges that the defendants used robocalls to leave deceptive messages claiming consumers faced imminent legal action about debts.
- In a case filed in the U.S. District Court for the District of South Carolina, the FTC alleged that Absolute Financial Services LLC and its operators collected more than $5.2 million from consumers through illegal debt collection practices. In its complaint, the FTC alleged that the company used the defendants in the National Landmark Logistics case to place deceptive robocalls alleging that consumers owed debt and faced legal action if they did not reply.
In addition to the three new actions, the FTC also recently resolved three prior cases related to the issues addressed in the enforcement initiative: Global Asset Financial Services Group LLC; Hylan Asset Management LLC; and Campbell Capital LLC.
While the cases here involve allegations, ACA International applauds the FTC’s general efforts to stop illegal robocalls and efforts by bad actors and to educate consumers.
When there are admissible facts evidencing egregious conduct, ACA supports law enforcement and regulators’ efforts to target bad actors, stop illegitimate debt collection activity, and safeguard consumer rights by removing known violators from the financial marketplace.
ACA will continue to work with the FTC and other regulators to help them understand the complex issues that legitimate debt collectors face, and takes pride in its frequent and varied industry compliance educational services and offerings in support of the overwhelming majority of legitimate debt collectors who operate lawfully, take consumer protection seriously and play a unique and much-needed role in our credit-based economy.