FTC Continues Operation Collection Protection Efforts

FTC FDCPA Debt Collection

On July 14, the FTC announced that two debt collectors and three companies (collectively, Defendants) previously charged with using false threats and other illegal collection tactics in violation of the FTC Act and the FDCPA have agreed to a stipulated final order. According to the FTC, the Defendants purchased consumer debts and then collected payment by intimidating consumers with false threat of lawsuits, wage garnishment and arrest, and by impersonating attorneys or process servers. In addition, the FTC alleged that the Defendants (i) failed to disclose to consumers their right to receive verification of a debt; (ii) did not identify themselves as debt collectors; and (iii) disclosed debts to third parties. The final order imposes a $4,802,646 judgment, which the FTC partially suspended upon the surrender of certain assets, and requires that the two individual debt collectors separately pay $59,207 and $50,562. The action is part of the FTC’s Operation Collection Protection, a nationwide initiative designed to combat alleged abusive and deceptive debt collection practices.