4310585452_93910c6d46 In July, 2013, the Federal Trade Commission (FTC) filed a lawsuit against a debt collection operation, Asset & Capital Management Group, Inc. (ACMG) and various other corporate entities working as a common enterprise with ACMG, for violations of the Fair Debt Collections Practices Act and the FTC Act for essentially “deceptive and unfair acts or practices in or affecting commerce.” The defendants allegedly held themselves out untruthfully to consumers as process servers and employees of a law firm. In an attempt to collect debts, they harassed, threatened, and intimidated consumers with legal action such as arrest, lawsuit, or seizure of property. They allegedly reported the debt to employers, colleagues, and other people related to the consumers. All of these actions are illegal under federal law.

A $4 Million Settlement

Debt collection is a carefully regulated industry. Debt collectors are bound by the Fair Debt Collection Practices Act (FDCPA) to treat consumers fairly and honestly. Failure to adhere to the terms of the FDCPA is what landed ACMG in so much trouble.

Almost one year after the inception of the lawsuit, in May, 2014, the defendants agreed to settle with the FTC. In exchange for the FTC dropping the charges against the defendants that they extorted payments from consumers, the Defendants were required to do the following:

Pay more than $4 million to the FTC to be allotted for consumer refunds
Turn over their personal assets and forego any claim to business assets
Be banned from the debt collection industry

In addition to the $4 million to be used to provide refunds to consumers, the settlements resolving the case impose judgments totaling over $90 million on the various Defendants. About fourteen months later, the FTC announced it would be sending out payments.

Will You Get Paid?

How do you know if you are entitled to a refund for a debt collection scam? If you believe you are entitled to compensation in an FTC case in general, simply go their website and visit the refunds page for a list of recent cases and resulting refunds. You can click on the name of the case from which you are seeking a refund and file an application for a refund or to obtain more information about that case. Remember that just because the FTC is issuing refunds does not ensure you will get all of your money back. The amount you receive is contingent upon the total amount ordered as a refund by the court, how many people are involved in the refund, and how much the defendants are able to pay. If you have already filed a claim with the FTC, you can call the number on your claim with any questions or if you have already received a check, you can contact the number on the check.

If you were one of the consumers affected by the deceptive acts of the defendants in this case, the FTC has already commenced mailing out approximately 95,000 refund checks. Compensation for each victim is approximately $42. According to the FTC, you should contact its refund administrator, Analytics Consulting, LLC at 1-855-312-3324 with any questions regarding the refund program. More information about the FTC’s refund program is available on its website. Additionally, the FTC advises that consumers who receive checks from their refund administrator should deposit or cash them within 60 days of the mailing date. According to the FTC, the deadline for cashing or depositing these funds is August 29, 2015. Keep in mind that the FTC never requires the payment of money or release of information by a consumer before funds can be cashed.

Stay Safe From Scams

If you are contacted by a debt collector, know your rights. There are many restrictions and regulations on debt collectors when it comes to contacting a debtor or otherwise demanding a debt. For example, a debt collector cannot contact you before 8 a.m. or after 9 p.m. without your consent and the debt collector may not contact you at work either orally or in writing. Additionally, there are restrictions on how often and in what form the collector can contact you. Some of these contacts require prior express consent on your part. Furthermore, a debt collector typically cannot contact a third party about your debt unless it is your designated legal counsel. For more information about your rights with regards to debt collectors, click here.

We Can Help

If you have experienced deceptive or otherwise illegal activity on the part of a debt collector, there are several actions you can take. First, you can report the problem to your state’s attorney general office. Second, you can file a complaint with the FTC or the Consumer Financial Protection Bureau (CFPB). If you believe you have a claim against a debt collector, contact us today for a free consultation and case evaluation with one of our experienced attorneys. We can explain your options for filing a claim and help you decide which option is best for your needs.