Debt Collection Industry Under Attack From the FTC

What’s unknown here is how these types of rulings affect the primary creditor.  Back in July, I wrote about Fair Debt Collections Act titled: Fair Debt Collection Practices Act And The Primary Creditor.  There is a huge grey area as this pertains to the primary creditor.

In a settlement announced Monday, the FTC brought its first-ever debt collection case related to unlawful text messages, signaling that the mobile form of communication is becoming a new channel for businesses with a track record of predatory practices.  The suit was settled with National Attorney Services, who upon hearing about the charges proactively worked with the FTC to remedy the the violations.

Here is an example of what was being sent out:

“It is URGENT for you to call National Attorney Service regarding a very sensitive matter,” the messages read. Along with the texts came threatening phone calls from people claiming to be law firm employees. They hinted at potential lawsuits, arrest and even “imprisonment” if consumers didn’t pay their debts.

The FTC is policing this activity through it’s website.  Consumers can file complaints here.

You can read the full article at the Huffington Post titled:Debt Collectors Using Terrible New Tactic Get Fined $1 Million.

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