$1 Million Settlement in Deceptive Debt Collection Text Messaging Case

A recent press release from the Federal Trade Commission’s (FTC) Bureau of Consumer Protection reported that a debt collector violated federal law when they used misleading text messages to collect consumer debt.  The two debt collection agencies, National Attorney Collection Services, Inc. and National Attorney Services LLC, are based out of California.  However, Illinois residents are no strangers to large debt collection companies, such as CACH, Calvary SPC, or Midland Funding.

Debt collectors must abide by the Fair Debt Collection Practices Act when they seek to recover money from consumers, and when they don’t, they can beheld liable for their actions.  In the recent FTC case, the California-based debt collector agreed to pay $1 million to settle the charges that involved violations of both the Fair Debt Collection Practices Act and the FTC Act.  If you believe you have been harassed or abused by a debt collection company, you’ll need an experienced consumer advocate on your side.  The Illinois consumer attorneys at the Emerson Law Firm can discuss your case with you today.

Bureau of Consumer Protection and Fair Debt Collection Practices

The Bureau of Consumer Protection is “the nation’s consumer protection agency,” according to the website.  Through the Bureau, the FTC filters complaints about deceptive consumer practices and works with law enforcement agencies “to investigate fraud and eliminate unfair business practices.”

When a lender or third-party debt buyer violates the Fair Debt Collection Practices Act (FDCPA), the Bureau investigates and can file lawsuits against those companies.  Some key elements to know about the FDCPA include:

·      All personal, family, and household debts are covered, including credit card bills, automobile and home loans, and medical bills.  Money borrowed to run a business, however, is not covered.
·      The FDCPA prevents debt collectors from contacting you 24/7.  Under the Act, collection agencies can’t contact you at “inconvenient times or places, such as before 8 in the morning or after 9 at night, unless you agree to it.”  Debt collectors also can’t call you at work if you tell them you’re not allowed to receive their calls at your place of employment.
·      In most scenarios, debt collectors can’t harass you, lie to you, threaten you, or engage in other unfair practices.

Details of the FTC $1 Million Settlement

How did the debt collector in the recent FTC case violate the FDCPA?  In short, they made false statements to consumers in text messages and threatened those consumers.  According to the FTC press release, Archie Donovan, who controls the two debt collection companies, “used English- and Spanish-language text messages and phone calls in which [the companies] unlawfully failed to disclose that they were debt collectors.”  In addition, they sent text messages in which they falsely identified themselves as law firm, and they “falsely threatened to sue consumers for not paying their debts or to garnish their wages.”

It’s important to keep in mind that text messaging in debt collecting isn’t always illegal.  Indeed, the FTC specifically held a workshop a few years ago that “addressed how debt collectors can use text messages to collect debts in a lawful manner while maintaining consumers’ privacy.”

If you have received deceptive or harassing text messages from a debt collection company, you may be eligible for compensation.  You should contact an experienced Chicago consumer attorney today.

See Related Blog Posts:
Debt Collection Scams Prevalent, According to Chicago Better Business Bureau

Illinois AG Files New Lawsuits Targeting Companies Using Fraudulent Practices in Foreclosing on Homeowners in Crisis

Comments

Post a Comment

Popular posts from this blog

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti
Read more

Learning About Different Types of Wills

Whether you are young or old, single or married, wealthy or with limited financial means, healthy or dealing with a medical condition, it is important to make a will. Many people have incorrectly heard that wills are only necessary for particular people, such as those with a substantial amount of assets or for older adults in poor health. Yet wills are critical for adults of all ages, and an experienced Oak Park estate planning lawyer can help you to make one. Before you begin working with a lawyer on a will, you might start conducting your own research into wills in Illinois and the requirements for a valid will. In so doing, you are likely to come across information about many different types of wills, and you are probably going to wonder whether you will need more than one kind of will. In short, there are different terms that can be used to describe the form or function of a will, as well as some distinct types of wills. Our Oak Park estate planning attorneys can explain in more
Read more

Younger Parents Need an Estate Plan

It is critical for younger parents to have an estate plan, even if they know they are healthy and do not anticipate that anything will happen in the near future. Much too often, younger parents assume that they can wait until they are older to consider estate planning or until there is a health-related reason to begin the estate planning process. Yet estate planning is critically important for parents who have minor children. While estate planning is important for adults of all ages, it can allow parents to make important decisions about who will care for their children in the event that they become unable to do so themselves. Our Oak Park estate planning lawyers can explain in more detail. Naming a Guardian for Your Minor Children in Your Will Most importantly for younger parents, making a will allows you to name a guardian who can care for your child in the event of your unexpected death. Nobody anticipates a deadly accident or a sudden situation in which there is a need for another
Read more