Illegal debt collection practices result in hefty fines

Financial challenges can be difficult for people in Minnesota for many reasons. One has to do with debt collection practices some companies might use. In many instances, those involved in debt collection will use many different tactics, including creditor harassment, to get what they want. This type of behavior has resulted in the Federal Trade Commission pursuing a California-based collection group for various legal violations.

According to the case, the company violated the Fair Debt Collection Practices Act and the Federal Trade Commission Act. The case was settled with more than 95,000 people who had been affected by the company set to receive a share of nearly $4 million. The defendants in the case are paying the debt with their own assets along with assets from the company. Part of the company's strategy was to use numerous different fictional names to try and recover debts they had bought from creditors.

The group did not adhere to the law regarding notification of consumers. Employees made threats to seize property and garnish wages, and in some cases they passed themselves off as process servers. In violation of federal law, financial information was disclosed to debtors' co-workers, families, and employers. As part of the settlement, those involved in this case can no longer be involved in debt collection, nor can they take part in debt settlement, assisting clients with mortgages, or lending.

Although being heavily in debt can be a worrisome problem, that does not mean that the creditors or collection companies are able to use various kinds of underhanded and illegal tactics to try and receive payment. Overwhelming debt is difficult as it is without having to be harassed. Consumers who find themselves in this situation may want to speak with an attorney who has experience with these matters.

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