An investigation by the U.S. Federal Trade Commission (FTC) into the activities of Van Nuys-based Forensic Case Management Services Inc. has resulted in the debt collection company agreeing to pay a $1.1 million fine. As reported by The Los Angeles Times, the owner of the company and several of its officers have also been permanently barred from the debt collection business due to their abusive tactics.
The case against the company began in 2011 as part of an overall crackdown by the FTC on abusive debt collection practices that were steadily increasing as the economy suffered a recession. The agency found that debt collectors with the company were threatening, berating, and bullying consumers in order to receive payments on old debts and fees they did not actually owe. In fact, several consumers reported being told that the bodies of their deceased relatives would be dug up for allegedly not paying their funeral bills.
The company also violated its “no recovery, no fee” pledge concerning old debts, kept more of the collected debt than it was legally entitled to and added fees for their own profit. Finally, collectors illegally gave debt information to third parties such as co-workers and employers.
At the Law Offices of Howard D. Silver, we understand that the unfair tactics used by debt collectors can put both financial and emotional stress on an individual. If you have been the victim of such actions, and need help call (855) 341-2611 for a free consultation about your case.