Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
FTC: $1M Settlement in Debt Collection Scam
Source: Associated Press
FTC: $1M Settlement in Debt Collection Scam
WASHINGTON September 25, 2013 (AP)
By JENNIFER C. KERR Associated Press
A debt collection operation that involved text messages and collectors allegedly posing as attorneys has led to a $1 million settlement with the federal government.
The Federal Trade Commission said Wednesday that a debt collector in Glendale, Calif., agreed to pay the civil penalty in order to settle FTC charges. The commission alleged that Archie Donovan and two companies he controls — National Attorney Collection Services, Inc. and National Attorney Services LLC — used text messages and phone calls, and failed to disclose that they were debt collectors, which is against the law.
In their messages, the collectors used their company names or variations of it to lead consumers to believe an attorney was contacting them, the FTC said. They also falsely threatened to sue consumers for not paying debts or to garnish their wages, and they illegally revealed debts to the consumers' family members, friends and co-workers, said the commission.
[font size=1]-snip-[/font]
A mailing from Donovan and his companies, the FTC said, used envelopes with a picture of a large arm shaking money from a consumer who is depicted upside down, with cash falling from his pockets. According to the commission, mailing envelopes can only include the name and address of the company and may not indicate that the consumer may owe a debt.
[font size=1]-snip-[/font]
WASHINGTON September 25, 2013 (AP)
By JENNIFER C. KERR Associated Press
A debt collection operation that involved text messages and collectors allegedly posing as attorneys has led to a $1 million settlement with the federal government.
The Federal Trade Commission said Wednesday that a debt collector in Glendale, Calif., agreed to pay the civil penalty in order to settle FTC charges. The commission alleged that Archie Donovan and two companies he controls — National Attorney Collection Services, Inc. and National Attorney Services LLC — used text messages and phone calls, and failed to disclose that they were debt collectors, which is against the law.
In their messages, the collectors used their company names or variations of it to lead consumers to believe an attorney was contacting them, the FTC said. They also falsely threatened to sue consumers for not paying debts or to garnish their wages, and they illegally revealed debts to the consumers' family members, friends and co-workers, said the commission.
[font size=1]-snip-[/font]
A mailing from Donovan and his companies, the FTC said, used envelopes with a picture of a large arm shaking money from a consumer who is depicted upside down, with cash falling from his pockets. According to the commission, mailing envelopes can only include the name and address of the company and may not indicate that the consumer may owe a debt.
[font size=1]-snip-[/font]
Read more: http://abcnews.go.com/Politics/wireStory/ftc-1m-settlement-debt-collection-scam-20370416