FTC fines debt collector $3.2 million for harassment

[Connery]

"The Federal Trade Commission has slapped the largest debt collector with a $3.2 million fine for harassing consumers.

The FTC said in court records filed Tuesday that debt collectors at Expert Global Solutions of Plano, Texas, used abusive tactics like calling people several times a day, early in the morning or late at night, and even at their workplace. In some instances, the collectors wouldn't stop calling consumers even after debts were paid, because they had not verified if the debt still existed, according to the settlement.

"In numerous instances (Expert Global Solutions debt collectors) call persons repeatedly or continuously with the intent to annoy, harass or abuse," the FTC said in a settlement filed in federal court in Texas. Expert Global Solutions is the world's largest debt collector with 32,000 employees and $1.2 billion in annual revenue, according to court filings."

FTC fines debt collector $3.2 million for harassment - Jul. 9, 2013


Nice to see these vultures get popped for some loot....I hope they are hounded until they pay up!!!

 

[waltky]

Debt scammers shut down...

FTC Shuts Down Two Scammers
September 13, 2013 — The FTC announced earlier this week that it has shut down two fraudulent debt relief services. The defendants in both cases ran their operations by cold-calling consumers and offering to help lower interest rates and monthly payments on credit card bills without ever actually providing these services. Although unrelated, both scams worked in nearly identical ways.

"Essentially what they would do is they'd call consumers and promise them that for an up front fee they would be able to substantially reduce their interest rates, help pay off their debt faster," said Spencer Elg, an FTC attorney involved with the case against Innovative Wealth Builders.

Consumers would pay a fee, typically between $795 and $1,200 according to Elg. In return they got nothing, or next to it. "Some consumers didn't get anything at all," Elg said. "Some consumers received an initial set of terms and conditions, and once they'd filled those out they got something called a financial plan. It was eight to 10 pages; basically it said that if you pay more, you pay off your debts faster and pay less interest over time."

Defendants in the second FTC case against Florida residents Brett Fisher and Andre Keith Sanders ran a largely identical scheme, although one that featured a robo-caller named Rachel to make the introduction. "What he and his cohort were doing was promising consumers that they could lower their credit car interest rates and save thousands of dollars," said Korin Ewing Felix, an FTC attorney involved with the Fisher case. "Ultimately consumers paid hundreds of dollars for this. What they would get would be a package of documents and a budget plan that said 'if you start paying more than your monthly minimum, then you can pay your credit cards faster, then you won't ultimately pay as much.'"

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See also:

8 Out of 10 Americans Subject to Financial Fraud
September 13, 2013 — Financial fraud is common, costly and frequently unreported. Announcing the results of a new survey, the FINRA Investor Education Foundation also says many investors are unable to recognize the signs of a potential scam.

Money hustles are nearing epidemic proportions, costing Americans over $50 billion a year. More than 8 out of 10 of survey respondents said they had been pitched a fast one, with 11% admitting they had lost a "significant amount of money" on such swindles.

"When it comes to financial fraud, America is a nation at risk," says FINRA Foundation President Gerri Walsh. "Fraudsters are very effective at reaching and enticing vulnerable populations into turning over their money, and far too few Americans are able to detect likely fraudulent sales pitches."

The survey of nearly 2,400 U.S. adults age 40 and older revealed that over 40% of those surveyed cannot identify some classic warning signs of financial fraud, including unrealistic returns and "fully guaranteed" investments. Senior Americans are most likely to be targeted by fraudsters and 34% more likely to lose money than respondents in their 40s.

Common cons included: