This action is part of the ftcs ongoing crackdown on abusive and phantom debt collectors. Attorney general lisa madigan joining ftc crackdown on. Nationwide crackdown against abusive debt collectors announced by ftc and federal, state and local partners the federal trade commission recently joined with federal, state and local law enforcement authorities to announce a federalstate enforcement initiative aimed at deceptive and abusive debt collection practices. Ftc returns money to people targeted by phony debt collection. The case against villa park, californiabased varang k. Additionally, the federal trade commission has also banned 86 companies from the debt collecting business. Debt collector accused of taking money from people who. Bella iii and luis shaw, both of buffalo, new york, and diane bella, who resides in florida, and 9 interrelated companies. Ftc continues crackdown on illegal debt collection activities. By law, debt collectors have to send you a validation notice in writing, within five days of contacting you. The action is part of the ftc s crackdown on phantom debt collection. As part of attorney general schneidermans continuing crackdown on rogue debt collectors that target consumers in financial distress, the lawsuit charged three individuals joseph c. Aug 24, 2016 the ftc has announced a nationwide crackdown on debt collectors.
Experts say the problem has escalated for many reason. Like the ftc on facebook, follow us on twitter, read our blogs, and subscribe to press releases for the latest ftc news and resources. At the ftc s request, a federal court has temporarily halted the operation and frozen its assets. The ftc enforces the fair debt collection practices act fdcpa, which prohibits deceptive, unfair, and abusive debt collection practices. According to the ftc s charges, thaker used social security numbers and bank account numbers obtained from payday lenders to identify the victims for his scam. Ftc and federal, state and local law enforcement partners announce nationwide crackdown against abusive debt collectors authorities announce 30 new actions targeting illegal practices such as. Since the inception of the consumer financial protection bureau cfpb, i had expected the federal trade commission to put its. Auto finance wasnt singled out, but it was mentioned when the federal trade commission ftc, joined by officials with consumer financial protection bureau cfpb and state and local authorities, announced on wednesday during a press conference the first coordinate enforcement crackdown on deceptive and abusive debt collection practices. Although debt collection calls are often dodged by those owing money and severely in debt, many are also finding that they are being pursued illegally for. Ftc shuts down debt collecting scheme that pretended to be from the government 3. Ftc and federal, state and local law enforcement partners. Ftc returns money to people targeted by phony debt. Debt collectors generate more complaints to the ftc than any other industry, according to government agency. In october 2015, the ftc and the state of new york charged a group of defendants known as delaware solutions with collecting on debts that they knew were bogus.
Newman june 28, 2018 comments off on ftc and ny oag crackdown on debt collection scheme the federal trade commission and the new york attorney generals office have announced that two new yorkbased operations and their principals have been charged with running a scheme to. Ftc continues debt collection crackdown richard west law. Debt collectors have a certain number of years they can sue you and win to collect a debt. The fair debt collection practices act as amended by pub. If you get a call from a debt collector, be wary of these deceptive claims. Feb 21, 2012 legitimate debt collectors must provide consumers with both written information about the debt, and instructions for protecting themselves if they dont think they owe the debt. One of the complaints has been filed under seal, and so the commission cannot yet disclose details of that case. Jun 28, 2018 ftc and ny oag crackdown on debt collection scheme by richard b. Nov 05, 2015 watchdog agencies announce debt collection crackdown. Mar 22, 2020 luckily, the federal trade commission is working hard to prevent such abuses, prosecute violators and educate consumers on how to spot a debt collection or debt relief scam. Ftc halts phantom debt collection scheme the daily courier. The ftc has announced a nationwide crackdown on debt collectors.
Attorney general lisa madigan joining ftc crackdown on harrasing debt collection services november 4, 2015 at 2. According to the ftcs charges, thaker used social security numbers and bank account numbers obtained from payday lenders to identify the victims for his scam. Nationwide crackdown on deceptive debt collectors truth. The federal trade commission ftc estimates that about 30 million americans have accounts in collection, and everyone should be aware of a few particularly shady tactics. Ftc charges debt collection scheme took consumers money. Ftc continues debt collection crackdown richard west law office. Ftc accuses aurora debt collector of fraud chicago tribune. The ftc will continue to protect consumers from deceptive or abusive debt collection practices. Posted on february 18, 20 march 22, 2020 by richard west. The cases are part of operation collection protection, a coordinated federalstate enforcement initiative targeting deceptive and abusive debt collection. The federal trade commission works to promote competition, and protect and educate consumers. Ftc and federal, state and local law enforcement partners announce nationwide crackdown against abusive debt collectors authorities announce 30. Most of the time the calls and complaints we receive are not from people who actually have debt, madigan said. Legitimate debt collectors must provide consumers with both written information about the debt, and instructions for protecting themselves if they dont think they owe the debt.
Ftc shuts down abusive and deceptive debt collector. Thaker, american credit crunchers, llc, and ebeeze, llc, is part of the ftcs continuing crackdown on fake debt collectors. As part of its ongoing efforts to crack down on unscrupulous debt collectors, the federal trade commission has accused a north carolina company of running a phantom debt collection scheme that. Oct 24, 2012 the ftc crackdown on bogus debt collectors. This nationwide crackdown encompasses 30 new law enforcement actions by federal, state, and local law enforcement authorities against collectors who use illegal tactics such as harassing phone calls and false threats of litigation, arrest, and wage. Although many debt collectors are careful to comply with consumer protection laws, others engage in illegal conduct. The ftc has asked federal courts to halt three abusive debt collection operations. Ftc continues crack down on deceptive debt collection. Its illegal for debt collectors to lie, make false threats, use a false identity, or trick people into paying a debt or an unauthorized fee, said jessica rich, director of the ftc s bureau of consumer protection. The ftc enforces the fair debt collection practices act fdcpa, which makes it illegal for debt collectors to use abusive, unfair, or deceptive practices when they collect debts. The crackdown announcement comes as news rules for collectors are being considered, the first major update to the protections against hardball collection in decades. Edith ramirez, chairwoman for the federal trade commission, said there were 280,000 complaints filed about debt collectors to federal authorities last year, including the ftc, the cfpb and other. Among other things, the fdcpa bars collectors from using obscene or profane language, threatening violence, calling consumers repeatedly or at unreasonable hours. Edith ramirez, chairwoman for the federal trade commission, said there were 280,000 complaints filed about debt collectors to federal authorities.
Authorities from the local to the federal level announced today an aggressive crackdown on deceptive and abusive debt collection practices that try and dupe hundreds of thousands of cash. The latest ftc crackdown is a reminder to us that there are debt scammers and unscrupulous debt collectors. Nov 04, 2015 while debt collection plays an important role in the u. Nov 05, 2015 authorities from the local to the federal level announced today an aggressive crackdown on deceptive and abusive debt collection practices that try and dupe hundreds of thousands of cash. Craig dellimore, debt collection, federal trade commission. Know your legal rights, so you can spot when something isnt right. Consumer bureau crackdown on debt collectors hits banks. Fair debt collection practices act federal trade commission. Illegal debt collection practices can also result in jail time for collectors.
You can learn more about consumer topics and file a consumer complaint online or by calling 1877ftchelp 3824357. Debtcollection abuses crackdown as part of its crackdown, the ftc created an infographic with consumer tips and statistics about debt collection complaints. The ftc cracks down on abusive debt collectors the. Ftc announces multiagency crackdown on abusive debt. Ftc cracks down on indian call center, fraudster debt. The ftc has taken action against several rogue debt. Oct 27, 2011 debt collectors generate more complaints to the ftc than any other industry, according to government agency. The ftc had a busy 2014 nailing abusive debt collectors. This nationwide crackdown encompasses 30 new law enforcement actions by federal, state, and local law enforcement authorities against collectors who use illegal tactics such as harassing phone calls and false threats of litigation, arrest, and wage garnishment. Dealing with debt is never easy, and being harassed by relentless debtcollectors only adds more stress and exacerbates the situation. This action is part of the ftcs continuing crackdown on abusive and phantom debt collectors. Ftc and state law enforcement partners announce more actions. Federal crackdown on debt buyer emphasizes need for. Luckily, the federal trade commission is working hard to prevent such abuses, prosecute violators and educate consumers on.
Jan 14, 2016 on january 7, the federal trade commission announced four new enforcement actions targeting debt collectors and continuing the ftcs nationwide crackdown of illegal debt collection tactics. Youll also find an appendix of content published on our site as part of our big issue series regarding complaints. Auto finance wasnt singled out, but it was mentioned when the federal trade commission ftc, joined by officials with consumer financial protection bureau cfpb and state and local authorities, announced on wednesday during a press conference the first coordinate enforcement crackdown on deceptive and abusive debt. The cfpb is working on a rule that is likely to regulate debt sales and require more documentation for soldoff debts, among other things. To date, the ftc and its law enforcement partners have brought a total of 148 actions in this effort including 16 which were filed or resolved in the last five months. Ftc halts another phantom debt collection scheme ftc. This action is part of the ftc s continuing crackdown on abusive and phantom debt collectors. Ftc and ny oag crackdown on debt collection scheme r. When a debt collector calls, its important to know your rights and what you need to do. Ftc and ny oag crackdown on debt collection scheme by richard b. The settlement order bans the defendants from debt collection, and prohibits them from misrepresenting. Nov 04, 2015 attorney general lisa madigan joining ftc crackdown on harrasing debt collection services november 4, 2015 at 2. Ftc cracks down on indian call center, fraudster debt collectors.
According to the complaint, the defendants ignored evidence that the. Since 2008, the federal trade commission ftc has seen a 73 percent increase in complaints about debt collectors. While debt collection plays an important role in the u. Last year, there were 144,159 filings against collection companies, the second largest. Its called the statute of limitations, and usually begins when you fail to make a payment on a debt. New crackdown on aggressive debt collectors government sets out to crack down on collection companies making illegal and threatening phone calls, but dont expect the phone to stop ringing. Ftc files complaints against debt collection agencies abc news. Watchdog agencies announce debt collection crackdown. Ftc and state law enforcement partners announce more. Defendants who allegedly abetted fake debt collector.
Debt collectors do have the right to collect legitimate debts. The ftc announced additional new enforcement actions against debt collectors engaged in allegedly illegal practices. Last year, the federal trade commission ftc received a record 164,361 complaints about debt collectors, which is a whopping 17 percent higher than the number it received in 2010. Nationwide crackdown on deceptive debt collectors truth in. They can contact you, send letters, and make calls.
Federal crackdown on debt buyer emphasizes need for consumer disclosures 3 min a recent federal trade commission ftc settlement with debt buyer asset acceptance capital corp. Hci and its owner peggy pearce agreed to halt their allegedly deceptive advertising claims about three cureall health and wellness products that targeted older consumers nationwide, pursuant to a settlement with the federal trade commission. Ftc asset acceptance case signalsdebt collection crackdown. Ftc halts phantom debt collection scheme the daily.
Nov 04, 2015 new crackdown on aggressive debt collectors government sets out to crack down on collection companies making illegal and threatening phone calls, but dont expect the phone to stop ringing. How to sue a debt collector debt collectors often use unsavory tactics to try to strongarm debtors into making payments. Ftc continues crackdown on illegal debt collection. Some collectors harass and threaten consumers, demand larger payments than the law allows, refuse to verify disputed debts, and disclose debts to. Debt collection the federal trade commission has charged a north carolina debt collection operation and its owner with taking money from consumers for fake debts they did not owe. Ftc and federal, state and local law enforcement partners announce nationwide crackdown against abusive debt collectors november 5, 2015 the federal trade commission and other law enforcement authorities around the country announced the first coordinated federalstate enforcement initiative targeting deceptive and abusive debt collection practices. Ftc cracks down on indian call center, fraudster debt collectors finally. Jan 12, 2016 on january 7, the federal trade commission announced four new enforcement actions targeting debt collectors and continuing the ftcs nationwide crackdown of illegal debt collection tactics. This is over and above the 1978 federal fair debt collection practices act, which prohibits debt collectors from using unfair or abusive tactics to collect.
Ftc shuts down debt collecting scheme that pretended to be. Once its over, your unpaid debt is considered timebarred, but in some states, you have to raise the age of the debt as a defense to win. Debt collectors generate more complaints to the ftc than any other industry. Nov 05, 2015 the crackdown announcement comes as news rules for collectors are being considered, the first major update to the protections against hardball collection in decades. On january 7, the federal trade commission announced four new enforcement actions targeting debt collectors and continuing the ftcs nationwide crackdown of illegal debt collection tactics.