Debt Collector Banned from Collection Business by Federal Trade Commission (FTC)

collectors working for the company falsely claimed that it would sue debtors, garnish their wages, levy their bank accounts, or seize their property

Shaking Hands in Front of Scales of Justice / Debt Collector Banned from Collection Business by Federal Trade Commission (FTC)
Image: Pixabay
September 22, 2016

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.

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.