A U.S. district court, in association with the Federal Trade Commission (FTC), has stopped a California debt collection agency from doing business after fraudulently collecting more than $5.2 million from consumers. As reported by The Huffington Post, the company made more than 2.7 million phone calls to 600,000 different numbers across the United States to obtain money that was not rightfully theirs to collect.
According to the FTC, one man created two debt collection companies known as Broadway Global Masters and In-Arabia that he outsourced to call centers in India. The call centers would call consumers across the U.S. and pressure them to make payments. Consumers were told the payments they were making would be applied to their loans. However, the agency did not actually have the right to collect what they were asking for.
Additionally, the company’s unfair debt collection practices violated the Fair Debt Collection Practices Act and the FTC Act by not only fraudulently collecting on loans, but using threats and misrepresentation to coerce consumers into paying. Tactics used by the collectors included foul language and representing themselves as law enforcement officials, and threatening arrest. Currently, almost $1 million has been returned to consumers.
If you or a loved one has been targeted by unfair debt collection practices, you have the right to put an end to such practices. Los Angeles County fair debt collection attorney Howard D. Silver has the skill to successfully put an end to unfair collection practices that are targeting you. For more information call (855) 341-2611.