Debt Collectors Agree to Stop Deceiving Consumers, Pay $800,000 Settlement to FTC

Serving Los Angeles, Riverside, Ventura, San Bernardino Counties & Nearby Areas of California

Multiple defendants, including a debt buyer and members of a debt collection law firm based in Mississippi, have settled with the Federal Trade Commission (FTC) over charges concerning unfair debt collection practices. As reported by Consumer Affairs, the defendants were charged with misleading consumers into paying unnecessary fees and threatening lawsuits. The defendants had also violated the law by charging consumers a fee for authorizing payment via telephone for false claims. Through the settlement, the defendants will pay restitution totaling $799,958 to consumers. Additionally, they are barred from making misrepresentations during debt collection including misrepresentations about extra fees and threatening lawsuits for not paying debts. The debt collectors and debt buyer have worked together since 2006. During that time, collectors would tell consumers that they were required to pay a fee of $18.95 for completing the transaction telephonically, but not letting them know the fee could be avoided by paying online or by mail. The FTC claimed that the agencies had collected at least $799,958 in fees since 2008. Understanding your rights and preventing unfair tactics from debt collectors is vital for the financial well being of a consumer. If you or a loved one has been targeted by such actions, get in touch with the Law Offices of Howard D. Silver by calling (855) 341-2611.