Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Debt collection companies settle FTC charges over collection tactics, (Jul 14, 2016)

By Jody Coultas, J.D.

Debt collector companies have settled charges filed by the FTC that they used false threats and other illegal collection tactics, according to a stipulated final judgment filed in the federal district court in Los Angeles on July 11. The companies are banned from the debt collection business (FTC v. BAM Financial, LLC, FTC File No.142 2315, Civil Action No. 8:15-cv-01672-JVS-DFM).

As part of the Operation Collection Protection initiative, the first coordinated federal-state enforcement initiative targeting deceptive and abusive debt collection practices, the FTC charged BAM Financial, LLC, Everton Financial LLC, and Legal Financial Consulting LLC with extracting payments from consumers through threats, lies, and other unlawful debt collection tactics. The threats included lawsuits, wage garnishments, and arrest. They also unlawfully disclosed debts to, or harassed, third parties, failed to identify themselves as debt collectors, impersonated attorneys and process servers, and failed to notify consumers of their right to receive verification of the purported debts.

BAM Financial and the other defendants agreed to a ban from debt collection activities and from misrepresenting material facts about financial-related products and services. The order also bars Defendants from profiting from consumers’ personal information and failing to dispose of it properly. The order imposes a $4,802,646 judgment that will be partially suspended upon the surrender of certain assets and will become due immediately if the defendants are found to have misrepresented their financial condition.

The Operation Collection Protection has resulted in over 100 lawsuits filed by more than 70 federal, state, and local law enforcement authorities against collectors who use illegal tactics.

Companies: BAM Financial LLC�?¾ Everton Financial LLC�?¾ Legal Financial Consulting LLC

News: ConsumerProtection FederalTradeCommissionNews