FTC Vigorously Enforces the FDCPA against Debt Collectors

The Federal Trade Commission (“FTC”) works to help consumers prevent fraudulent, deceptive, and unfair business practices by arming consumers with information so they can spot, stop and avoid such unethical practices. When such business practices occur they work to enforce the Fair Debt Collection Practices Act (“FDCPA”). The FTC has been taking action against those debt collectors who have been using illegal methods when attempting to collect from consumers. In the past year, seven major debt collection cases have either been brought or resolved by the FTC.

Of the cases brought or resolved in the past twelve months, debt collectors have allegedly used deceptive or abusive tactics to intimidate consumers. Debt collectors have threatened consumers in various ways, lied to consumers, have illegally garnished wages, and various other tactics. Three of the operations were “phantom debt” collectors who were allegedly attempting to collect on debts not owed to them or did not exist. In our last article we posted, some of the major and most common illegal practices were addressed.

In one case, Forensic Case Management Services, Inc., who did business as Rumson, Bolling & Associates, the defendants had allegedly threatened consumers with bodily harm, desecration of their deceased family members, and death to their pets if they refused to pay. Additionally, they allegedly retained higher fees from their clients than they had previously agreed to take for their services. The FTC and the defendants settled the charges; however they were banned from future debt collection activity.

In another case, the Luebke Baker case, the defendants allegedly used caller ID to mask their identities, lied to consumers by telling them that magazine debts were exempt from the statute of limitations, and garnished wages illegally. The FTC settled with the defendants in this case. There were also cases where the defendants allegedly used insults, lies, false threats of imprisonment, falsely claimed affiliations with attorneys and law firms, charged unauthorized late fees and attorneys’ fees, and charged inflated fees.

In each of the FTC’s three “phantom debt” cases the defendants allegedly worked with overseas call centers to defraud consumers often using payday loans and would collect money that was never owed or never apply the money paid to the consumers’ debts.

Some debt collectors have also been attempting to collect debts that were too old to be legally enforceable, as was the case in an investigation of a debt collector RJM Acquisitions the FTC recently closed. The investigation was closed after the company started providing consumers with a disclosure to its collection. With this disclosure consumers were no longer under the impression that they could be sued on the debt.

There are many tactics debt collectors use in order to collect on a debt. Sometimes these tactics violate the FDCPA. In these circumstances the FTC enforces the FDCPA against the debt collectors and educates consumers so they are aware of and do not fall victim to such illegal tactics. When such conduct is so violative of the FDCPA, there can be civil liability imposed on debt collectors to help the victims be compensated.

If you believe that you, a loved one, a friend, or an acquaintance has otherwise been subjected to a debt collector who has violated these laws, please contact us today and speak with one of our qualified FDCPA attorneys. We have been successfully representing those abused and taken advantage of by debt collectors for years, and have a long list of successful stories to share with you. We offer a FREE CASE REVIEW for you to assess whether we can assist you with your matter. Please do not hesitate to contact us toll free at 1-800-875-3666 if you prefer to talk to a trained professional over the phone instead, or of course, visit our website at http://www.krohnandmoss.com/.