U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 07-12-2011, 03:54 PM
 
3,739 posts, read 4,167,241 times
Reputation: 3412

Advertisements

Debt Collector Will Pay $1.75 Million to Settle FTC Charges


Debt Collector Will Pay $1.75 Million to Settle FTC Charges
Ignored Consumers’ Disputes Without Checking Its Information for Accuracy
To resolve Federal Trade Commission charges, one of the nation’s largest debt collectors will pay $1.75 million for allegedly making repeated telephone calls to collect from the wrong person, to collect the wrong amount, or both. The settlement is the second largest civil penalty obtained by the FTC in a debt collection case.

“Debt collectors had better make sure their information is accurate, or they could end up paying a big penalty,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection. “There is no excuse for trying to collect debt from someone if you can’t confirm that they actually owe it.”

According to the FTC’s complaint, between 2006 and at least 2008, Allied Interstate, Inc. continued collection efforts even after consumers told the company they did not owe the debt, without verifying the accuracy of the disputed information. Allied is a Minnesota corporation that works out of offices in the United States, Canada, India, and the Philippines. The company also allegedly made improper harassing phone calls to consumers, using abusive language or calling many times a day for weeks or months, sometimes hanging up when the calls were answered. In addition, the complaint charges that Allied made repeat calls to third parties seeking to locate a consumer, revealed alleged debts to third parties without the consumers’ consent or court permission, and threatened legal action against consumers it did not intend to take. The complaint alleges that these practices violated the Fair Debt Collection Practices Act and Section 5 of the Federal Trade Commission Act.

In addition to the monetary penalty, the proposed consent decree requires Allied to take specific steps whenever (1) a consumer disputes that he or she owes the debt or the amount of the debt, or (2) a reasonable person would consider the information on which Allied is relying to collect the debt to be implausible, facially unreliable, or missing essential information. In either circumstance, Allied must either close the account and end collection efforts or suspend collection until it has conducted a reasonable investigation and verified that its information about the debt is accurate and complete. If Allied cannot substantiate that the consumer owes the debt, the company cannot sell the debt or provide it to any business other than the client from which it obtained the debt.

The consent decree also bars Allied from:

Making false statements to collect a debt or obtain information about a consumer;
Making claims that a debt is owed or about the amount without a reasonable basis;
Asking a third party for a consumer’s location information more than once without that third party’s consent or a reasonable belief that the person’s earlier response was wrong or incomplete and that the person now has correct location information;
Communicating with third parties about a consumer’s debt without the consumer’s consent or court permission;
Using obscene or profane language or harassing consumers with repeated phone calls;
Making any other false or misleading statement in collecting a debt, including threatening action it does not intend to take; and
Violating the Fair Debt Collection Practices Act.
The Commission vote to authorize staff to refer the complaint and the consent decree to the Department of Justice for filing was 5-0. The documents were filed in the U.S. District Court for the District of Minnesota.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe”
that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendants have actually violated the law. Consent decrees are for settlement purposes only and do not constitute an admission by the defendant of a law violation. Consent decrees are subject to court approval and have the force of law when signed by the judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

MEDIA CONTACT:
Frank Dorman
Office of Public Affairs
202-326-2674
(FTC File No. 0823207)
Rate this post positively Reply With Quote Quick reply to this message

 
Old 11-09-2011, 10:03 AM
 
Location: Old Town Alexandria
14,495 posts, read 24,698,901 times
Reputation: 8894
Quote:
Originally Posted by KwaK View Post
lol sunny you can always "sic" me on them
Hello I am (fill in the blank) personal representative now would you like to discuss the FDCPA regs that you are violating
im a paralegal I defend people who are pushed to the limits by negligence and incompetence. This includes most 3rd party outsourced collections "companies" based in third world areas...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-09-2011, 10:07 AM
 
Location: Old Town Alexandria
14,495 posts, read 24,698,901 times
Reputation: 8894
Quote:
Originally Posted by hopefulone View Post
Debt Collector Will Pay $1.75 Million to Settle FTC Charges


Debt Collector Will Pay $1.75 Million to Settle FTC Charges
Ignored Consumers’ Disputes Without Checking Its Information for Accuracy
To resolve Federal Trade Commission charges, one of the nation’s largest debt collectors will pay $1.75 million for allegedly making repeated telephone calls to collect from the wrong person, to collect the wrong amount, or both. The settlement is the second largest civil penalty obtained by the FTC in a debt collection case.

“Debt collectors had better make sure their information is accurate, or they could end up paying a big penalty,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection. “There is no excuse for trying to collect debt from someone if you can’t confirm that they actually owe it.”

According to the FTC’s complaint, between 2006 and at least 2008, Allied Interstate, Inc. continued collection efforts even after consumers told the company they did not owe the debt, without verifying the accuracy of the disputed information. Allied is a Minnesota corporation that works out of offices in the United States, Canada, India, and the Philippines. The company also allegedly made improper harassing phone calls to consumers, using abusive language or calling many times a day for weeks or months, sometimes hanging up when the calls were answered. In addition, the complaint charges that Allied made repeat calls to third parties seeking to locate a consumer, revealed alleged debts to third parties without the consumers’ consent or court permission, and threatened legal action against consumers it did not intend to take. The complaint alleges that these practices violated the Fair Debt Collection Practices Act and Section 5 of the Federal Trade Commission Act.

In addition to the monetary penalty, the proposed consent decree requires Allied to take specific steps whenever (1) a consumer disputes that he or she owes the debt or the amount of the debt, or (2) a reasonable person would consider the information on which Allied is relying to collect the debt to be implausible, facially unreliable, or missing essential information. In either circumstance, Allied must either close the account and end collection efforts or suspend collection until it has conducted a reasonable investigation and verified that its information about the debt is accurate and complete. If Allied cannot substantiate that the consumer owes the debt, the company cannot sell the debt or provide it to any business other than the client from which it obtained the debt.

The consent decree also bars Allied from:

Making false statements to collect a debt or obtain information about a consumer;
Making claims that a debt is owed or about the amount without a reasonable basis;
Asking a third party for a consumer’s location information more than once without that third party’s consent or a reasonable belief that the person’s earlier response was wrong or incomplete and that the person now has correct location information;
Communicating with third parties about a consumer’s debt without the consumer’s consent or court permission;
Using obscene or profane language or harassing consumers with repeated phone calls;
Making any other false or misleading statement in collecting a debt, including threatening action it does not intend to take; and
Violating the Fair Debt Collection Practices Act.
The Commission vote to authorize staff to refer the complaint and the consent decree to the Department of Justice for filing was 5-0. The documents were filed in the U.S. District Court for the District of Minnesota.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe”
that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendants have actually violated the law. Consent decrees are for settlement purposes only and do not constitute an admission by the defendant of a law violation. Consent decrees are subject to court approval and have the force of law when signed by the judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

MEDIA CONTACT:
Frank Dorman
Office of Public Affairs
202-326-2674
(FTC File No. 0823207)
excellent info. educate yourselves...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-10-2012, 10:05 AM
 
Location: California
5,268 posts, read 6,098,449 times
Reputation: 11053
Call from (866) 578-4773 at 5:30AM

We had a call at 5:30 AM from someone wanting to discuss a "personal business" matter. When I did a reverse telephone number lookup I found on our caller ID, it belonged to Allied. I didn't give them any info and demanded they remove us from their calling list. She claimed she needed to verify our number was valid before she was "allowed" to do that but I refused to verify anything. It had a third world accent but claimed to be calling from AZ where it was 8:00AM!
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top