collectors working for the company falsely claimed that it would sue debtors, garnish their wages, levy their bank accounts, or seize their property
The former vice president of a debt collection company is banned from the debt collection business under the terms of a settlement with the Federal Trade Commission (FTC).
The complaint was filed on behalf of the FTC by the U.S. Department of Justice against Commercial Recovery Systems, its president Timothy Ford, and its vice president David Devany. It alleged that collectors working for the company falsely claimed that it would sue debtors, garnish their wages, levy their bank accounts, or seize their property unless they paid their debts. All of these acts violate the Fair Debt Collection Practices Act.
The court entered summary judgment against the company and Ford in April 2016. This bans them from the business of debt collection and prohibits them from misrepresenting essential facts about any and all goods and services.
The amount of civil penalties to be paid by Ford will be determined by the federal court.
The stipulated final order announced today subjects Devany to the same prohibitions levied on Ford and their former company. It also imposes a civil penalty judgement of $496,000, though this will be suspended in part when Devany pays $10,000. If it is discovered that he has misrepresented his financial situation, the full judgement amount will become due immediately.
When stipulated orders are approved and signed by the District Court judge, they have the force of law.