Company Illegally Collected Money from Consumers Harmed in Scams
Sometimes the companies that you think will save you from scammers are actually scammers themselves.
Consumer Collection Advocates falsely claimed it could recover money consumers had lost to telemarketing scams. The fee recovery company was, in itself, a scam.
A court order issued by request of the Federal Trade Commission (FTC) has banned the company from selling recovery services and from telemarketing. Consumer Collection Advocates, however, has appealed the court's decision.
The court order resolves a 2014 FTC complaint that charged Consumer Collection Advocates and Michael Robert Ettus with illegally collecting money from consumers, many of them elderly people harmed by timeshare resale and precious metal investment frauds.
The court subsequently prohibited the defendants, pending resolution of the case, from misrepresenting that consumers who bought their services would recover, or were likely to recover, a substantial portion of money they had lost.
The final order of permanent injunction announced today also prohibits the defendants from misrepresenting any product or service, collecting payments for any recovery service, selling rights to collect for such service, profiting from customers' personal information, and failing to properly dispose of customer information. The order imposes a judgment of more than $2.8 million.