Court Bars Pinnacle Payment Services from Engaging in Illegal Debt Collection Practices
A court judgment has ordered a debt collection company to stop engaging in illegal debt collection practices as a result of a 2013 Federal Trade Commission (FTC) complaint.
Under the settlement with the FTC, Pinnacle Payment Services and its operators have been barred from future debt collection activities, but the majority of the $9.4 million fine has been suspended due to their inability to pay.
Operating out of Atlanta and Cleveland, Pinnacle Payment Services used fake abusiveness names, robocalls and voice messages to threaten legal action and arrest customers who didn't pay debts that they didn't owe. Although about 3,000 complaints were made to the FTC, the company collected millions of dollars from victims.
While the $9.4 million judgment will be partially suspended for most defendants, Demarra Massey was individually fined $1.5 million, which reflects the consumer injury caused during her tenure with the operation.
For more information about illegal debt collection practices, visit the FTC's website.