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 07:36:00 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 tha...
Feds Sue Debt Collector That Allegedly Misrepresented Attorney Involvement
Mon, 04 Sep 2017 21:39:00 GMTOne Ohio company apparently didn’t follow this rule when sending consumers letters that claimed attorneys were involved in the collection of their debts, and now it’s ... included a payment coupon tha...
How a Reporter Became the Target of a Phantom Debt Collector
Tue, 30 Aug 2016 21:05:00 GMTHow persistent and brazen are phantom debt collectors? Last month ... Again, I replied to the note, telling the sender I was a reporter seeking a comment and this time noted that I wanted to give ACS ...
Related Bing Web Search
Debt buyer (United States) - Wikipedia
(Wed, 06 Feb 2019 16:50:00 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, 09 Feb 2019 19:59:00 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.
800-900-1389 / 8009001389
(Thu, 31 Jan 2019 04:46:00 GMT)penn credit and collections also goes by penn credit corporation. alternate business names: c.c.c., central credit control, degarcia, donald c. donagher, jr.
8 Tips to Know If Debt Collector is Legit - Bankrate.com
(Wed, 04 May 2011 23:57:00 GMT)Verify that the agency exists. Just because the collection agency is legit doesn’t mean the debt is yours. Collectors do make mistakes. But at least you can make sure the debt isn’t an ...
Tate & Kirlin Associates - Wrongful Debt Collection ...
(Sun, 10 Feb 2019 06:22:00 GMT)Consumer complaints and reviews about Tate & Kirlin Associates. Wrongful Debt Collection. Credit Cards
Distraint - Wikipedia
(Sat, 09 Feb 2019 00:25:00 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, 07 Feb 2019 17:31:00 GMT)Credit card issuers offer plans to reduce interest rates on credit cards through hardship plans, debt management plans, credit counseling plans, or offer balance concessions through debt settlement, which go a long way in helping their customers avoid bankruptcy.In this way (credit card payment concessions), Capital One is not all that different from other credit card banks.
Wake Up New Zealand | What Does The Globalist Agenda / New ...
(Sat, 09 Feb 2019 18:05:00 GMT)The EPA’s decision conflicts with a March 2015 report from the International Agency for Research on Cancer that found that glyphosate “probably” contributes to non-Hodgkin lymphoma in humans and classified it as a ‘Group 2A’ carcinogen.
The Academy | ConsiderChapter13.org
(Sun, 10 Feb 2019 02:54:00 GMT)Where a Chapter 13 plan provides that a mortgage payment will be paid “outside the plan,” the plan does not “provide for” the mortgage payment and, accordingly, the discharge under § 1328 is not applicable to the mortgage obligation.
The Roman Coin Blog — Dirty Old Coins
(Sat, 09 Feb 2019 15:56:00 GMT)A blog about Roman coins. It's safe to say that the biggest worry someone new to collecting ancient coins has is getting burned by buying fakes.
Related News Story Videos From Youtube
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
How Do Debt Collectors Know So Much About You?
Related Videos On: How Do Debt Collectors Know So Much About You?
Debt Collection Call To Wrong Number
Related Videos On: Debt Collection Call To Wrong Number
Springfeel Makes Some Calls
Related Videos On: Springfeel Makes Some Calls
BBB Warns of Phony Debt Collectors
Related Videos On: BBB Warns of Phony Debt Collectors
Blow Us A Whistle
Comments (Whistles) Designed By Disqus
