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