Abusive Debt Collectors Permanently Banned from the Collection Business

The defendants were charged as part of Operation Collection Protection, an ongoing crackdown on debt collectors that use deceptive and abusive collection practices

Abusive Debt Collectors Permanently Banned from the Collection Business
Image: Pixabay
July 14, 2016

Two debt collectors and three companies charged with using false threats and other illegal debt collection tactics have been banned permanently from the debt collection business under a settlement with the Federal Trade Commission (FTC)—which charged them as part of Operation Collection Protection, an ongoing federal-state-local crackdown on debt collectors that use deceptive and abusive collection practices.

In October 2015, the FTC charged the BAM Financial defendants with extracting payments from consumers through intimidation, lies and other unlawful debt collection tactics. The court subsequently halted the operation and froze the defendants' assets pending litigation.

The FTC says that the defendants have now agreed to a stipulated final order that bans them from debt collection activities and prohibits them from misrepresenting material facts about financial-related products and services.

The order also bars the defendants from profiting from consumers' personal information and failing to dispose of it properly. The order imposes a $4.8 million judgment that will be partially suspended upon the surrender of certain assets and requires payment of $59,207 by Luis O. Carrera and $50,562 by Roberto Llaury.

The full judgment will become due immediately if the defendants are found to have misrepresented their financial situation.

The corporate defendants in this case are BAM Financial LLC, also doing business as West and Associates; Chelsea & Associates and Chelsea Financial; Everton Financial LLC, also doing business as West and Associates; and Legal Financial Consulting LLC, also doing business as West and Associates Services.

To learn more about debt collection and your consumer rights, read Facing Debt Collection? Know Your Rights and Fake Debt Collectors. A full list of companies and individuals banned from the debt collection business as a result of FTC actions can be viewed here.

Get Connected with Consumer Connections

Stay up-to-date about issues that really matter! Get the Consumer Connections newsletter!

We're committed to providing you with information you need to make you a better, more informed consumer. Whether it's a vehicle recall, a product recall, or a new scam, we feature it in Consumer Connections.

So why not give it a try? Go on. All of your friends are doing it. It's completely free and comes just once a week.

So you're finally ready to trade in your current car for a new one! Congratulations on such an important step. If you've never bought a new car before, you may know nothing about the process. To begin with, there are a number of things you should do to get ready to buy the car before you ever step on the dealership lot.

Have you ever noticed that your bank account somehow had 'extra' money in it even though you knew for a fact it wasn't yours? If so, you are not alone. It happens more often than you would think. All it takes is for a bank teller to type in one wrong number at the time a deposit is being made.

Great rates do exist. But even if you are offered a low interest car loan, you can probably save more money by accepting a slightly higher rate and using rebates or other incentives or by getting your own financing and taking the rebates and incentives.

Many people feel like they just can't get ahead when it comes to money. What you may not know is that saving during tax season can start you on the path to financial security. We urge you to take advantage of tax season to prepare for unexpected emergencies or plan for the future. Here are some tips to help get started.