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Federal Trade Commission Shuts Down Debt Collection Agency

By October 13, 2011Uncategorized

Buffalo, NY – At the request of the Federal Trade Commission, on September 27, 2011, the U.S. District Court issued an order shutting down a debt collection firm that subjected consumers to abusive debt collection practices.

As part of a continuing investigation into scams involving consumers in financial distress, the FTC filed a complaint against six people and three companies involved in a California based collection operation doing business as Rumson, Bolling & Associates. This California based operation collected debts from consumers all over the United States.

The FTC complaint alleged that the defendants engaged in the following activities in violation of the Fair Debt Collections Practices Act:

  1. Threatened physical harm and death to consumers and their pets;
  2. Threatened to desecrate the bodies of deceased relatives;
  3. Used obscene and profane language;
  4. Falsely threatened debtors with arrest for non payment;
  5. Improperly revealed consumers’ debt to third parties in an effort to embarrass and humiliate;
  6. Falsely claimed consumers would be liable for legal fees;
  7. Falsely threatened that lawsuits would be filed and assets would be taken

The FTC charged that these practices violated the Fair Debt Collections Practices Act and other federal laws.

According to Jeffrey Freedman, “Most collection agencies follow the rules and treat consumers in a fair and respectful manner. However, some collection agencies do not and their employees engage in disrespectful and improper conduct that is illegal.”

He said, “In our law practice we see cases everyday where collectors threaten our clients with arrest, disclose their debts to third parties, use profanity, and make a variety of other false statements in an attempt to collect debts.”

Freedman went on to say, “Often the only way to stop these overly aggressive collectors is to bring suit against them. In many instances, we have been able to collect monetary awards for our clients and stop the abuse. In some cases, the debt being collected is also forgiven as part of the settlement.”