FTC Wins $10 Million Judgment Against
Fraudulent Debt Collectors
For Release: July 28,
2005
Defendants Permanently Barred from Debt-Collection Activities
The Federal Trade Commission has won a $10.2 million judgment against a debt-
collection operation, National Check Control, and its principals – the estimated
amount of consumer injury they caused. The amount represents the largest
judgment in FTC history for violations of the Fair Debt Collection Practices Act
(FDCPA). In addition, a federal district court judge has permanently banned the
defendants from engaging in debt collection in the future.
In a complaint filed in May 2003, the FTC alleged that the defendants violated
the FDCPA by harassing and threatening consumers with claims that they owed
money for checks returned for insufficient funds. The defendants made repeated
phone calls, sent threatening letters, and falsely threatened that consumers
could face civil or criminal charges if they did not pay the debts. The FTC
alleged that, in many cases, the consumers did not owe the money, or owed far
less than the defendants claimed. At that time, the court entered a temporary
restraining order freezing the defendants’ assets.
In addition to the ban on debt-collection activities and the $10,204,445
judgment, the court has banned the defendants from violating the FDCPA in the
future, including harassing consumers with repeated phone calls, obscene
language, or threats of legal action; misrepresenting the amount a consumer
owes; failing to notify consumers of their right to dispute the debt; and
misrepresenting that the person contacting the consumer is a lawyer. The
defendants are further barred from selling or transferring any consumer
accounts. In order to satisfy the monetary judgment, the court ordered the
defendants to turn over all of their assets. It is not yet clear how much money
actually will be available for redress.
The final order for judgment and permanent injunction was entered in the U.S.
District Court for the District of New Jersey on July 15, 2005.
The FTC received substantial assistance in pursuing this matter from Postal
Inspectors from the North Jersey/Caribbean Division; the U.S. Attorney’s Office
for the District of New Jersey; and the New Jersey Department of Law and Public
Safety. In addition, the FTC would like to thank the following states for their
invaluable assistance in investigating this matter and bringing the complaint:
Colorado, Idaho, Maine, Minnesota, North Dakota, Washington, and West Virginia.
Copies of the final order are available from the FTC’s Web site at http://www.ftc.gov
and also from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania
Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent
fraudulent, deceptive, and unfair business practices in the marketplace and to
provide information to help consumers spot, stop, and avoid them. To file a
complaint in English or Spanish (bilingual counselors are available to take
complaints), or to get free information on any of 150 consumer topics, call
toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at
http://www.ftc.gov. The FTC enters Internet, telemarketing, identity theft,
and other fraud-related complaints into Consumer Sentinel, a secure, online
database available to hundreds of civil and criminal law enforcement agencies in
the U.S. and abroad.
MEDIA CONTACT:
Claudia Bourne Farrell
202-326-2181
STAFF CONTACT:
Gregory A. Ashe or Seena Gressin
202-326-3719 or 202-326-2717
(FTC File No. X030068)
(Civil Action No. 03-2115 (JWB)
Federal Trade Commission
http://www.ftc.gov/opa/2005/07/nationalcheck.htm
I'm sure you will want to go check out the Federal Trade Commission web page too because not only is that story carried but it also talks about another debt collector named Barry Sussman who has a long and colorful history of being severely chastised by the FTC.
Learn What Your Rights Are:
Fair Debt Collections Practices Act
Brochure on Fair Debt Collection from the Federal Trade Commission
This article is brought to you by Education Center 2000.
Our mission is to educate consumers about secured and unsecured credit and homeowners about predatory lending practices, bank fraud and the legal options available to them.
We believe that if you don't know your rights, you don’t know your options.
website: http://educationcenter2000.com
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