The Federal Trade Commission fields numerous consumer complaints each day about the debt collection industry. As they work to clean up some of the riffraff some companies are finding themselves under a mandatory shut down.
Violators Not Tolerated
The FTC has outlined rules that debt collection companies must follow in the Fair Debt Collection Practices Act, yet they continue to receive reports of violations of these rules. Just last week, the FTC forced the shutdown of a Houston-based company for engaging in inappropriate collection behaviors like using deception, making threats of imprisonment, and abusive language.
The district court ordered the Texas debt collection company to suspend operations and surrender assets, estimated at $550,000. The assets will be used to pay the victimized customers who were charged fees illegitimately. Further, the company’s owners will face a $1.4 million judgment. The FTC is also issuing an permanent ban on the company and its employees from working in the field of debt collection.