Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC goes after debt collection operation over questionable tactics, (Aug 1, 2013)

At the request of the FTC, the federal district court in Los Angeles has issued a temporary restraining order against a debt collection operation that allegedly extorted payments from consumers by using false threats of lawsuits and calculated campaigns to embarrass consumers by unlawfully communicating with family members, friends, and coworkers. The court order stops the illegal conduct, freezes the operation’s assets, and appoints a temporary receiver to take over the defendants’ business while the FTC moves forward with the case (FTC v. Asset & Capital Management Group, FTC File No. 122 3031, Case No. CV13-5267).

According to the FTC's complaint, the defendants’ false and misleading claims violated the FTC Act and the Fair Debt Collection Practices Act. In addition, the FTC alleged that the defendants violated the Fair Debt Collection Practices Act by:

• improperly contacting third parties about consumers’ debts;

• failing to disclose the name of the company they represented, or the fact that they were attempting to collect a debt, during telephone calls to consumers; and

• failing to notify consumers of their right to dispute and obtain verification of their debts.

The agency alleged that the defendants were part of an elaborate debt collection scheme operating from locations in Orange and Riverside counties in California, and that they used various business names, including Western Performance Group, as well as fictitious names, which they changed frequently to avoid law enforcement scrutiny.

News: ConsumerProtection FederalTradeCommissionNews