May 28, 2014

Debt Collectors to Repay over $4 Million in Federal Trade Commission Settlement

Debt Collector Scams

Asset Capital and Management Group, a debt collector, will surrender more than $4 million dollars back to consumers for making false threats associated with debt collection.  The Southern California debt collector was faced with $90.5 million dollars in judgments, but the judgments will be suspended under the deal.  According to the deal, the four principals of the company will surrender their assets, and the assets of the company will be liquidated to refund consumers.  The company must cease all debt collection activity indefinitely.

Read More:Debt Collector Scams

As with typical debt collector scams, the Federal Trade Commission (FTC) alleged the debt collector engaged in a number of deceptive and abusive practices violating both the Fair Debt Collection Practices Act and the FTC Act.  As a result of these activities, the company illegally collected payments from consumers for credit card debt purchased by the company.

If you are being harassed by a debt collector, hire a qualified debt settlement attorney.  An experienced debt settlement law firm employs a team of  attorneys that understand your rights and can protect you from false claims and avoid debt collector scams.  In addition, a debt settlement attorney will work to reduce and eliminate debts for a fraction of the original balance.

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