Robins Global News & Noticias 
Consumer Daily Reports
Consumer News: FTC freezes debt collectors seeking payment of ‘phantom’ debts
- Details
- Category: Consumer Daily Reports
-
11 Feb 2019
- Last Updated: 11 February 2019
- Published: 11 February 2019
- Written by www.ConsumerAffairs.com News
The Federal Trade Commission (FTC) has secured a court order that has temporarily seized the assets of a company it accuses of running a debt collection scam.
In its complaint, the FTC charged Global Asset Financial Services Group, LLC of violating a number of consumer regulations, including the use of deception and intimidation to collect money that consumers did not owe.
The FTC said the defendants not only falsely claimed to be attorneys and made threats against consumers who didn’t pay, but they often tried to collect money the targeted consumers did not owe. That’s because the defendants had been sold “phantom” debt.
When a creditor, such as a credit card company, decides a debt is not collectible, it writes it off its books and takes the loss for tax purposes. But third-party debt brokers will sometimes buy that debt for pennies on the dollar. It then uses its aggressive force of debt collectors to try to collect at least some of the debt.
Fair Debt Collection Practices Act
The practice is not illegal as long as the collection process conforms to the Fair Debt Collection Practices Act (FDCPA). In the case of the defendants, the FTC says it is aware of an operator who has been bundling and selling charged-off debt that includes “counterfeit” debts.
In the netherworld of the scam universe, the FTC says scammers who purchase stolen credit card or Social Security numbers create phony debts in a consumer’s name, then sells it as uncollectable, charged off debt. The victim is then subjected to repeated, and sometimes harassing, collection efforts.
In the case of the defendants, the FTC charged that collection efforts went far beyond the line of what is allowed under the law. The agency said debt collectors resorted to calling a consumer’s family and friends, used abusive and threatening language, and even threatened to have the consumer arrested.
Consumers’ rights
This type of behavior by a debt collector should serve as a red flag to a consumer that they are not dealing with a legitimate debt collector. Consumers who are confronted with these tactics have a number of rights under the FDCPA.
First of all, you are not legally required to talk to a debt collector. If contacted, ask for a record of the collection in writing. Within five days after you are first contacted, the collector must send you a written notice telling you the amount you owe, the name of the creditor to whom you owe the money, and what action to take if you believe you do not owe the money.
Any debt collector who makes threats or insists on payment over the phone is operating outside of the law and is probably running a scam. Learn more about your rights under the Fair Debt Collection Practices Act here.
Posted: 2019-02-11 15:14:43
Listen to this article. Speaker link opens in a new window.
Text To Speech BETA Test Version.
Embed
Related News Stories From The Web And More
Related Bing News
Consumer News: FTC freezes debt collectors seeking payment of ‘phantom’ debts | Consumer Daily Reports | RobinsPost News Network - Newscast
FTC freezes debt collectors seeking payment of ‘phantom’ debts
Mon, 11 Feb 2019 07:26:00 GMTThe Federal Trade Commission (FTC) has secured a court order that has temporarily seized the assets of a company it accuses of running a debt collection scam. In its complaint, the FTC charged Global ...
Someone Else's Debt Could Ruin Your Credit Rating
Mon, 10 Dec 2018 22:03:00 GMTAnd substantial numbers of these Americans report being hounded for debts ... bulk, seeking judgments like the one obtained against Amrit Singh, so they can have local authorities use wage garnishment ...
Amherst's Andrew Shaevel: honest businessman or 'phantom debt' kingpin?
Sat, 29 Sep 2018 17:00:00 GMT[RELATED: How to handle a "phantom debt" collector] The government charges ... He said he has been threatened with arrest and violence dozens of times by debt collectors – seeking payment of debts ...
Payday-Loan Mogul Indicted for Masterminding Phantom Debt Scheme
Mon, 02 Jul 2018 09:46:00 GMTA one-time payday-loan mogul was indicted on federal charges that he made up millions of fake debts ... Some collectors call victims’ relatives or coworkers, or make false threats of arrest. The FTC ...
2 Investigators: Debt ‘Collectors’ Trick People Into Paying Money They Don’t Owe
Wed, 08 Feb 2017 20:01:00 GMTAttorney General Lisa Madigan says Macwan used “really abusive debt collection practices, trying to collect on phantom debts, calling people threatening ... “Once you make a payment to somebody and ...
Related Bing Web Search
Fake Debt Collectors | Consumer Information
(Sat, 20 Apr 2019 05:00:00 GMT)Consumers across the country report that they're getting telephone calls from people trying to collect on loans the consumers never received or on loans they did receive but for amounts they do not owe.
Debt buyer (United States) - Wikipedia
(Sat, 20 Apr 2019 07:52:00 GMT)A debt buyer is a company, sometimes a collection agency, a private debt collection law firm, or a private investor that purchases delinquent or charged-off debts from a creditor or lender for a percentage of the face value of the debt based on the potential collectibility of the accounts. The debt buyer can then collect on its own, utilize the services of a third-party collection agency ...
844-498-6545 / 8444986545 - 800notes
(Sat, 20 Apr 2019 04:03:00 GMT)The message left on my answering machine stated that it was an attempt to collect a debt. The woman identified herself as Chelsea. Since I don't have any delinquent debts I'm going to wait until she calls back.
National Ethics Association
(Sun, 21 Apr 2019 03:26:00 GMT)National Ethics Association is committed to helping businesses service their customers with Transparency and Trust
National Ethics Association
(Sat, 20 Apr 2019 20:52:00 GMT)National Ethics Association is committed to helping businesses service their customers with Transparency and Trust
855-412-7708 / 8554127708 - 800notes
(Wed, 17 Apr 2019 10:54:00 GMT)I have gotten two phone calls from this number. I did not answer the first time because I thought it was a solicitor. They scared me with the voicemail, giving me a "case number" and telling me that if I didn't contact them that they would be forced to make a decision on my behalf.
Distraint - Wikipedia
(Sat, 20 Apr 2019 04:24:00 GMT)Distraint or distress is "the seizure of someone’s property in order to obtain payment of rent or other money owed", especially in common law countries. Distraint is the act or process "whereby a person (the distrainor), traditionally even without prior court approval, seizes the personal property of another located upon the distrainor's land in satisfaction of a claim, as a pledge for ...
Capital One Debt Collection Debt Settlement Credit Reports ...
(Thu, 18 Apr 2019 12:34:00 GMT)Hello Michael, I opened up an account with Capital One last year with a credit line of only $300 and i used the credit card up and never paid it back up until now because i am more financially stable now i called and spoke with a representative and she told me that my balance is only $451 to pay it off but my account is closed that I would have to reapply again but there is no garantee that i ...
FDCPA Released by the CFPB - natlawreview.com
(Mon, 25 Mar 2019 11:36:00 GMT)The CFPB has issued its annual FDCPA report. It covers the practices of the CFPB and FTC including debt collection, rulemaking, and other financial policies over the year.
It’s tax season and the scammers are out in full force
(Wed, 30 Jan 2019 17:26:00 GMT)It’s tax season and the scammers are out in full force The IRS reminds consumers that it never asks for financial information via email, text messages, or social media
Related News Story Videos From Youtube
How Do Debt Collectors Know So Much About You?
Related Videos On: How Do Debt Collectors Know So Much About You?
Debt Collection Scam! Don't pay what you don't owe
Related Videos On: Debt Collection Scam! Don't pay what you don't owe
Debt Collectors Create Fake Court
Related Videos On: Debt Collectors Create Fake Court
Episode 3: Debt Collection Agency Scammer Prank Call Part 1
Related Videos On: Episode 3: Debt Collection Agency Scammer Prank Call Part 1
BBB Warns of Phony Debt Collectors
Related Videos On: BBB Warns of Phony Debt Collectors
Blow Us A Whistle
Comments (Whistles) Designed By Disqus
