FTC Announces Civil Penalty Judgment Against Debt Collector Fined $2 Million for FDCPA Violations

Consumer Finance FTC Debt Collection

On April 24, the FTC announced a civil penalty judgment against the president of a Texas-based debt collection company, ordering him to pay $2 million for violating the Fair Debt Collection Practices Act by falsely threatening debtors (see previous InfoBytes post). The judgment was filed in the Eastern District of Texas and resolves a case filed on the FTC’s behalf by the Department of Justice in January 2015, alleging that the company’s collectors were impersonating attorneys and judicial employees; falsely threatening litigation, wage garnishments and asset seizures; and misrepresenting the character or legal status of debts under collection. Both the president and the debt collection company have been banned from the debt collection business under a permanent injunction issued in April 2016.