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FTC Recovers $4 Million from Debt Collector

  • Jul 27 2015

According to CBS News, approximately 95,000 consumers are going to receive nearly $4 million in total reimbursements for money they lost in a debt collection scam. The Federal Trade Commission (FTC) announced that Asset Capital Management Group purchased debt from creditors and used illegal methods to collect it from individual debtors.
FTCrecovers4millionpic15227292 FTC Recovers $4 Million from Debt Collector

According to the FTC, Asset Capital used numerous underhanded collection tactics such as threatening debtors that they would be arrested if they failed to pay, disclosing that consumers owed the debts to employers and relatives, and falsely claiming they would repossess the consumer’s assets. The FTC alleged that Asset Capital violated the Fair Debt Collection Practices Act in a variety of ways, including the failure to disclose the required details regarding the debts being collected. Additionally, the consumers were not notified of their right to have the debt verified or their ability to dispute the debt.

Asset Capital Management settled the charges last year with a $90 million settlement, most of which was suspended. The company’s assets were frozen by the FTC and the individual defendants were required to surrender personal property. Between the assets of the company and the individuals, it totaled the $4 million of refunds (which is approximately $42 per victim). Asset Capital was also barred from participating in the debt collection industry.

The administrator handling the refunds for the FTC is Analytics Consulting. All victims who receive a refund check should deposit or cash it within 60 days of the date it was mailed. It is also important to note that the FTC never asks individuals for more information or money in order to deposit a refund check, so if you receive this type of request it is a scam.

Fitzgerald Campbell handles debt collector harassment cases on a “contingency fee” basis, which means you pay us nothing unless we are successful! There is no charge to you for us to represent you. If we win, we will get paid. If we lose, we will not get paid. It is that simple. The law provides that if your case is successful, the creditor or collector will pay your reasonable attorney fees. Call us today toll free at 866-927-8289 or contact us online to schedule a free initial consultation.

Posted in: Debt Collections